People of State Pension Age Could Be Missing Out on £3,900 Pension Credit

The DWP is giving out Pension Credit payments to those who apply, with Money Saving Expert noting that many people have not claimed this benefit.

Cornwall Council issued an email on Friday to its local households stating: “£3,900 for five minutes of your time? Help spread the word to anyone you know over State Pension age that they could be missing out on extra money.”

“Spending five minutes using the government's online 'can I claim Pension Credit? ' checker tool and find out if they're entitled to extra support. They might be allowed to claim even if they: have savings, own their own home, are working, are getting a small occupational pension, have been turned down in the past,” reports BirminghamLive.

Pension Credit Offers Extra Financial Support and Benefits for State Pensioners on Low Income

Pension Credit provides additional funds to people over the State Pension age on a low income to assist with living expenses.

It can also assist with housing costs, including ground rent or service expenses. If you qualify for Pension Credit, this could make you eligible for extra weekly money and to a variety of other benefits.

Even though Pension Credit is a means tested benefit, people may still qualify for it if they have savings or own a property. It is highly encouraged to claim it even if you only are eligible for a small amount, as Pension Credit opens the door for a range of additional benefits.

Such benefits could include a free TV licence (for those over 75), NHS dental treatments and examinations, free eye tests, glasses, contact lenses and vouchers, as well as hospital travel costs, £25 in cold weather payments from DWP, and assistance with housing and council tax.

It also secures £300 in winter fuel costs are also included. To be eligible for Pension Credit, people must be residents of England, Scotland, or Wales and be of State Pension age.

The Prime Minister echoed this sentiment, asserting that the “basic proposition that you should look for work is right,” while emphasizing the need for increased support to help more people re-enter employment.

This stance follows a broader crackdown on benefit fraud and a focus on reducing the number of people unable to work due to illness. Sir Keir Starmer stated on BBC Radio 4 that while “hard cases” exist, the overall goal is to support individuals in finding work where possible.

Rise in Long-Term Sick Leave

Long-term sick leave in the UK has reached a record high of 2.8 million in October 2023, making up 7% of the working-age population, according to data from the Resolution Foundation.

This figure surged from 2.1 million in July 2019, following the Covid-19 pandemic, and has yet to decline to pre-pandemic levels. Experts warn that without intervention, this number could increase by 50% over the next five years.

Despite the government's intentions, sense, a national disability charity, criticized the Prime Minister’s remarks, arguing that they “ignore the enormous and deeply unfair barriers” disabled people face in seeking employment. Meanwhile, the Office for Budget Responsibility predicts that sickness and disability benefits could rise by £30 billion over the next five years.

Government Plans to Combat Worklessness

At the Labour Party conference in Liverpool, Work and Pensions Secretary Liz Kendall promised new strategies to address “the root causes of worklessness” by coordinating support for work, health, and skills. She declared, “The only way to get Britain growing again is to get Britain working again.”

Additionally, Health Secretary Wes Streeting announced plans to deploy “crack teams of top clinicians” to hospitals in areas with the highest numbers of sickness benefit recipients, aiming to reduce waiting lists and accelerate treatment. This initiative is part of broader reforms that aim to impact both the health and economic sectors.

However, specific details on how the government intends to reduce long-term sick leave remain unclear, with more concrete policies expected in the upcoming Budget.

PIP Claimants Set to Receive Bonus Payment

Over three million claimants are expected to receive payments directly into their bank accounts. Recipients have been advised not to worry about the source of the money, as it may not be immediately clear where the funds are coming from.

The payment represents a £10 cash provided by the DWP as a Christmas Bonus. It is distributed every year in December to persons receiving particular benefits to give them a slight boost over the holiday season, reports BirminghamLive.

Who Qualifies for The Christmas Bonus

To be eligible for the Christmas Bonus, people must be present or 'ordinarily resident' in the United Kingdom, Channel Islands, Isle of Man, or Gibraltar during the predicted qualifying week of December 2 to 8, 2024. More information about the actual qualifying week will be announced later this year.

Apart from PIP, claimants must be receiving at least one qualifying benefit during the designated week. These include:

• Adult Disability Payment (Scotland only)
• Armed Forces Independence Payment
• Attendance Allowance
• Carer Support Payment (Scotland only)
• Carer’s Allowance
• Child Disability Payment (Scotland only)
• Constant Attendance Allowance (under Industrial Injuries or War Pensions schemes)
• Contribution-based Employment and Support Allowance (after the first 13 weeks)
• Disability Living Allowance
• Industrial Death Benefit (for widows or widowers)
• Incapacity Benefit (long-term rate)
• Mobility Supplement
• Pension Credit (guarantee element)
• Severe Disablement Allowance (transitionally protected)
• State Pension (including Graduated Retirement Benefit)
• Unemployability Supplement or Allowance (under Industrial Injuries or War Pensions schemes)
• War Disablement Pension (at State Pension age)
• War Widow’s Pension
• Widowed Mother’s Allowance
• Widowed Parent’s Allowance
• Widow’s Pension

The payment is designed to provide additional assistance during the pricey Christmas season, but critics claim it makes little difference and should be adjusted according to rising inflation over time. It also comes at a critical time, during a major debate over the elimination of Winter Fuel Payments for millions of retirees.

The Government provides some clarity about the Christmas Bonus, stating that it is a “one-off tax-free £10 payment made before Christmas.” This bonus is given to individuals who receive certain benefits during what is known as the ‘qualifying week,’ typically defined as the first full week of December.

The Government adds that “you do not need to claim,” as the payment should be processed automatically. However, to be eligible for the payment, individuals must receive at least one of the qualifying benefits during this specific period in December.

State Pensioners Could Miss Out on £400 Triple Lock Payment

In a recent interview on BBC Radio 5 Live, Pat McFadden, the Chancellor of the Duchy of Lancaster, mentioned that the triple lock guarantees a rise of about £400 or more in the basic state pension for the coming year.

However, FullFact, a group that checks facts, has challenged this claim about the full basic state pension, which is expected to go up by around £350 starting in April next year. This increase applies to men born before April 6, 1951, and women born before April 6, 1953.

Hannah Smith from FullFact stated: "It seems likely Mr. McFadden misspoke and was intending to refer to the new state pension (for people of state pension age born after the dates above), the full value of which is set to increase by approximately £460."

State Pension Increase Likely to Hit 4% Amid Confusion Over Triple Lock Payment

State pension payments increase annually in accordance with the rate of inflation, earnings' growth, or 0.25% whichever is higher; this is refered to as the "triple lock".

The figures regarding next year's increase are based on data released earlier this month. This data, which establishes the earnings component of the triple lock, shows average weekly earnings rose by 4% from May to July this year. Since this is higher than both the current rate of CPI inflation and 2.5%, it likely means the state pension will go up by 4% starting in April 2025, according to Devon Live.

Hannah said: "Although Mr. McFadden said the increase would be "over the next year," he was responding to a question about financial pressures "this winter," and his answer, which was slightly unclear, also referred to how the triple lock could help people "this year." The basic state pension increased in April by around £700 a year, while the new state pension increased by around £900 a year."

She went on to say: "If an MP makes an inaccurate claim on broadcast media, they should take responsibility for ensuring it is appropriately corrected and make efforts to ensure the correction is publicly available to anyone who might have heard the claim."

The announcement of this change, confirmed by Labour Chancellor Rachel Reeves, has sparked backlash, particularly from charities. Many have voiced concerns that the cut will leave a significant number of pensioners unable to afford heating during the colder months.

A judicial review has been launched by Govan Law Centre (GLC) in Scotland's Court of Session. If successful, the ruling could have implications across England, Wales, and Northern Ireland.

What is the Legal Challenge About?

The legal case, brought by GLC, represents a Scottish pensioner couple who are now ineligible for the Winter Fuel Payment. GLC asserts that the UK Government did not adequately assess the impact of the changes on state pensioners.

The Department for Work and Pensions (DWP) did issue a “High Level Equality Analysis”, asserting that it fulfilled its statutory duties before implementing the policy. However, GLC argues that this analysis fails to meet the standards required by the Equality Act 2010, which mandates that public bodies assess how their decisions affect individuals with “protected characteristics,” such as age and disability. Furthermore, GLC contends that there was insufficient consultation with pensioners about the proposed changes.

Potential Outcomes of a Successful Legal Challenge

While a favourable ruling could declare the Winter Fuel Payment changes unlawful, it is not guaranteed that payments will be immediately reinstated. If the court rules in favour of the pensioners, the Government could be ordered to conduct a full impact assessment.

Given the timing, it is unlikely this could be completed before the scheduled payments in November and December, meaning all pensioners could receive the payment this winter by default.

GLC is attempting to expedite the legal proceedings to ensure this outcome. However, it remains uncertain whether reinstated payments would extend beyond this year.

Changes to Winter Fuel Payment Eligibility

Under the new regulations, Winter Fuel Payments are restricted to those over state pension age who are also receiving means-tested benefits. Eligible pensioners must have claimed one of the following benefits between September 16 and September 22, 2024:

• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Pension Credit
• Universal Credit

How Much is the Winter Fuel Payment Worth?

The value of the Winter Fuel Payment depends on a person’s age and living situation:

• £200 if:
  • You live alone and were born between September 23, 1944, and September 22, 1958
  • You live with someone, and one or both of you were born in the same timeframe
• £300 if:
  • You live alone and were born before September 23, 1944
  • You live with someone, and one or both of you were born before that date

A Government spokesperson highlighted that over one million pensioners would still benefit from the Winter Fuel Payment, while others would receive help through the £150 Warm Home Discount.

The spokesperson emphasized the Government’s commitment to the triple lock, ensuring pension increases by £1,700 during the current Parliament, noting the need to prioritize support for those most in need given current fiscal challenges.

Inflation recently reached 2.2%, partly because gas and electricity prices haven’t dropped as much as before.

Research shows that nearly half of those on Universal Credit ran out of food last month, and many are finding it hard to afford basic necessities. In response, the new Labour government plans to launch a 'Back to Work' initiative to help more people find jobs, as reported by Express.

In a few days, Chancellor Rachel Reeves is expected to share her first budget as experts predict tax hikes and spending cuts. The prime minister issued a warning in August encouraging people to  “accept short-term pain for long-term good” emphasizing that October's Budget will be “painful” and that the government will have to make “big asks” of the public.

Benefits Available This Year

The benefits you get depend on your personal financial situation. In some cases this may include, your age, your health and your location. Benefits that you may qualify for include:

• Attendance allowance
• Carer’s allowance
• Child benefit
• Disability living allowance
• Employment support allowance
• Income support
• Jobseeker’s allowance
• Pension credit
• Personal independence payment (PIP)
• State pension
• Universal Credit

State Pension: Key Payment Dates and How to Receive It

To qualify for the state pension, you must attain the state pension age, which currently stands at 66 for both genders. There are however planned increases people need to be aware of. This implies that from 2026 to 2028, the age will increase to up to 67 for anyone born on or after April 1960, and will later increase to 68 between 2044 and 2046 for those born on or after 1977.

The amount of pension you get is based on your National Insurance Contributions (NICs) you were able to accumulate during your working life. To be eligible for the full new state pension, at least 35 qualifying years of contributions are required, and you need a minimum of 10 years to qualify for any pension.

For those who attained state pension age prior to April 2016, 30 years of contributions are needed for the full basic state pension.

The new state pension is paid every four weeks, covering the previous four weeks. This is why the April increase won't be fully paid out until May. The day you get your payment depends on your National Insurance number, but if it's due on a bank holiday, you might get it earlier, according to GOV.UK.

What Other Financial Help is Available?

You might be able to get help based on who your energy provider is. This week, Octopus emailed their customers, reminding them they could claim £150 through the Warm Home Discount. It's worth checking your energy provider's website or giving them a call to see what support they offer.

If you live alone, you can also get a council tax discount. Discounts might also be available if you're a student or an older person. You can check the gov.uk website to see how to lower your council tax.

There are other ways to get help with your living costs, including benefits and financial support if you're eligible. You can check the full list of options on the gov.uk website.

Winter Fuel Payment: Eligibility Criteria and Recent Restrictions

Annually, qualifying pensioner households get a tax-free government grant known as the Winter Fuel Payment, which helps with winter heating expenses. In England, Scotland, Wales, and Northern Ireland, it is accessible to more than a million households.

To qualify for the Winter Fuel Payment, people must have had an active claim for pension credit during the qualifying week of September 16 to 22 in order to be eligible for the Winter Fuel Payment.

The government announced that starting with this winter, there will be restrictions for those on Pension Credit or certain other benefits in July, even though the program provided up to £300 to all homes with a member of state pension age each winter.

People will not qualify for the Winter Fuel Payment if any of the following circumstances describe them:

Reside in Scotland

Individuals can apply for the Winter Heating Payment (WHP) if they live north of the border. This payment, which is paid from December 2024, and is valued at £58.75.

If they do not reside in the UK, they may only be eligible for the Winter Fuel Payment if they were born before September 23, 1958, and are receiving a UK benefit such as the State Pension. Additionally, they must have moved to a qualifying country before December 31, 2020.

People must also have a real and sufficient and genuine connection to the UK, which could include having family there or having lived or worked in the country.

Live in a Care Home

Individuals won't qualify for the Winter Fuel Payment if they were living in a care home between June 24 and September 22, 2024.

However, they may qualify for the payment if their stay in the care home was less than 13 weeks, including the 'qualifying week' of September 16-22, 2024.

Live in Hospital

Individuals who have been in a hospital receiving free treatment for over a year won't qualify for the Winter Fuel Payment. Since 1997, this benefit was introduced in order to assist pensioners with their heating bills.

It is an annual tax-free benefit of around £100 and £300 meant to assist with the cost of heating their residences throughout the winter.

In addition to the regular Winter Fuel Payment, another benefit “Pensioner Cost of Living Payment” of either £150 or £300 was given from winter 2022 to 2023.

Recently Been in Prison

The Winter Fuel Payments won't be given to people who were in prison for the whole qualifying week, which is September 16-22, 2024. The funds aren't transmitted automatically. In order to get the payment, they will have to submit a new application, even if they were able to claim it previously. UK nationals and dual nationals residing in a country that is not Ireland are advised to download and fill in form IPCF091.

Recent government data revealed that 38,500 people applied for pension credit in the five weeks after the Chancellor’s announcement, compared to 17,900 in the five weeks prior. This surge could add an estimated £278 million in annual costs for the government, reducing Labour’s anticipated £1.5 billion savings from the policy.

Key Details of Labour’s Pension Credit Policy

On July 29, Labour’s Chancellor Rachel Reeves announced that only retirees with incomes below £11,343 would continue to automatically receive winter fuel payments. Previously, these payments were available to all state pension-age individuals. The policy shift was aimed at saving £1.5 billion, but the increased pension credit claims are expected to offset a portion of those savings.

Last year’s data shows that 850,000 eligible pensioners were not claiming pension credit, equating to roughly one-third of those entitled. Pension credit provides a state pension top-up and additional benefits such as reduced council tax, housing support, and free prescriptions. Claimants typically receive £3,900 annually, and with the winter fuel payment, this rises to at least £4,100. Pensioners over 80 years old are eligible for a £300 winter fuel payment.

Analytics firm Policy in Practice estimates that the cost to the government per pension credit claimant could reach £7,223 due to these added benefits.

Political Backlash and Economic Impact

The week of Reeves’ announcement saw 7,900 pension credit applications, double the number from the previous week. The government had estimated that an additional 95,000 pensioners would claim pension credit due to the new policy, though it's uncertain if all applicants will qualify.

Prime Minister Rishi Sunak faced internal party tensions during the Labour Party conference in Liverpool, where delegates voted to oppose the winter fuel payment cut. Although non-binding, the vote reflected strong opposition within Labour itself. Previously, 50 Labour MPs defied party leader Sir Keir Starmer, refusing to support the policy in a parliamentary vote.

Pension Credit Impact on Older Pensioners

Statistics indicate that the cut disproportionately affects the oldest pensioners. Of the 11.6 million winter fuel payments made last year, 5.8 million went to households where residents were aged 75 or older, showing the vulnerability of older pensioners to these changes.

A government spokesman defended the policy, stating, “We are committed to supporting pensioners, and millions will see their state pensions rise by £1,700 during this Parliament under the triple lock policy. Given the public finances we inherited, it is essential to target support to those in need.”

Sir Keir Starmer claims that cutting off benefit fraud help the government to 'maintain support for the welfare state’, reports BirminghamLive. Banks and other financial institutions will be required to share data that could help identify benefit fraud by Labour's new Bill.

DWP Introduces New Measures to Protect Vulnerable Claimants and Prevent Fraud

The government claims that in order to protect vulnerable claimants, the new bill will involve some serious measures and also create safeguards to make sure the DWP does not misuse the new powers.

The DWP stated: “Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms to monitor these new powers. DWP will not have access to people’s bank accounts and will not share their personal information with third parties.”

It further stated that the legislation keeps the government's promise to protect taxpayers' money and shows their commitment to preventing fraud, errors, and waste in public services, including social security.

Universal Credit Fraud on the Rise

Universal Credit is the most prevalent area of benefit fraud, representing two-thirds of all cases. Big Brother Watch's director, Silkie Carlo, stated: “Everyone wants fraud to be dealt with, and the government already has strong powers to investigate the bank statements of suspects.

“But to force banks to constantly spy on benefit recipients without suspicion means that not only millions of disabled people, pensioners, and carers will be actively spied on, but the whole population’s bank accounts are likely to be monitored for no good reason.

She went on to say: “A financial snooper’s charter targeted to automate suspicion of our country’s poorest is intrusive, unjustified, and risks Horizon-style injustice on a mass scale.”

Crossbench peer Beeban Kidron declared: “If the government introduces spyware as previously proposed, I will oppose it with the ferocity that Labour colleagues in opposition did.”

What Is a Serps Pension?

Serps was part of the old state pension system, which was replaced by the new state pension in 2016. Under the old scheme, pension payments comprised two elements:

1. The basic pension, which you could earn through 30 years of National Insurance contributions (NICs).
2. The additional pension, also known as Serps, which provided workers an opportunity to earn extra income on top of the basic state pension.

Those who reached state pension age before April 6, 2016, receive their payments under the old system, which may include income from Serps. In contrast, the new state pension has just one payment element based on the total number of NIC years.

How Do Serps Pensions Work?

If you reached state pension age before April 2016, you might already be receiving a Serps payment. For 2024-25, the basic state pension under the old system is £169.50 per week, or £8,814 annually.

The amount you receive from Serps can vary widely. While some may get only a few extra pounds per week, others could receive up to £218.39 weekly, significantly boosting their overall pension income. A pensioner entitled to both the maximum basic and Serps pension could receive £388 a week, or £20,176 annually.

The triple lock system guarantees increases to the basic state pension based on inflation, wage growth, or a minimum of 2.5%. However, Serps payments rise only in line with inflation.

Contracting Out of Serps

It was possible to “contract out” of Serps by contributing more to a workplace or private pension, in exchange for paying reduced NICs. This could lead to a higher retirement income if your private pension investments performed well, though it would reduce the amount received from the state pension.

Workers in the public sector were more likely to have been contracted out, especially if they had final salary pension schemes.

Inheriting a Serps Pension

You may be able to inherit part of your spouse or civil partner’s Serps pension. The percentage you can inherit depends on when your partner passed away:

• If they died before October 6, 2002, you could inherit up to 100% of their Serps pension (a maximum of £218.39 per week).
• For those who passed away after that date, the amount depends on both their date of birth and the date they died. Men born before October 5, 1937, and women born before October 5, 1942, can inherit up to 100%.

Can You Cash In Your Serps Pension?

You cannot directly cash in your Serps entitlement. However, if you were contracted out and directed your NICs into a private or workplace pension, you can access those funds at age 55 (rising to 57 from 2028).

Finding Lost Serps Pensions

If you opted out of Serps and directed your NICs to another pension plan, it’s possible you’ve lost track of those funds. With around 2.8 million lost pension pots valued at £26.6 billion across the UK, this is a common issue.

If you’ve held multiple jobs (the average is 11 during a lifetime), it’s easy to lose contact with some of your pension savings. Fortunately, these pensions are not lost forever. Using your National Insurance number, you can track down lost pensions through the Government’s Pension Tracing Service. This free service provides contact details for pension schemes, helping you reconnect with your savings.

When searching online, be cautious of third-party websites offering similar services, as some charge high fees or engage in fraudulent activities. Always use official channels, like the Government’s free service, to protect your savings.

Arthritis: The Leading Condition Among Attendance Allowance Claimants

Arthritis is responsible for 35% of all Attendance Allowance claims, encompassing more than one-third of the 1.7 million total claimants. The condition, which often causes joint pain, swelling, and stiffness, falls under an umbrella of joint-related conditions covered by the DWP.

With approximately 20 million people in Great Britain affected by arthritis or similar joint conditions, many more may be eligible for the benefit but remain unaware of it.

Breakdown of Attendance Allowance Claimants (February 2024)

• Scotland: 42,115
• England: 380,607
• Wales: 36,603
• Living abroad: 1,658
• Great Britain total: 460,993

Although many individuals qualify for Attendance Allowance, lack of awareness prevents numerous potential claimants from applying. Below is a guide on what Attendance Allowance entails and how to start the application process.

What is Attendance Allowance?

Attendance Allowance is designed to help those with a physical or mental disability that impacts their ability to care for themselves. It does not cover mobility needs and does not require the applicant to have a caregiver in order to claim.

Who Should Apply?

Individuals should consider applying if they require assistance or supervision throughout the day or night due to a disability or illness. This includes help with tasks such as:

• Personal care (e.g., getting dressed, eating, bathing)
• Staying safe

Even if you don’t currently receive assistance but struggle with daily tasks due to pain or need physical support, you may still be eligible for this benefit.

How Much Can You Receive?

The amount paid depends on the level of care required. Claimants may receive:

• £72.65 per week (lower rate)
• £108.55 per week (higher rate)

Payments are made every four weeks, equating to £290.60 or £434.20 per period. Recipients can use the money for any purpose, such as:

• Paying for taxis
• Contributing toward household bills
• Hiring a cleaner or gardener

How to Apply for Attendance Allowance

To claim Attendance Allowance, you'll need to fill up a comprehensive application form. While the form may seem overwhelming, support is available from organizations such as Citizens Advice. They offer detailed guidance on completing the application process.

Alternatively, if you prefer to apply independently, Citizens Advice provides a step-by-step guide to assist with your claim form. Full instructions on how to request the form by post or over the phone can also be found on the GOV.UK website.

The Department for Work and Pensions, or DWP, provides the Household Support Fund, which is a fixed amount of money that enables local authorities to assist the most vulnerable households.

Birmingham City Council Launches £200 Payments to Support Households in Need

Birmingham City Council is providing £200 payments to help with essential costs such as food, energy, and water. The local government states, " "Various forms of assistance are being offered to address a wide range of household circumstances. "These funds are not impacted by the section 114 notice issued by Birmingham City Council (BCC)," as reported by Birmingham Live.

The council emphasizes in its guide to the Household Support Fund that all applications must be made legitimately. They warn, "You may have committed an offence under the Fraud Act 2006 if you falsely declare your circumstances, provide a false statement, or provide false evidence in support of your application."

The council has a zero-tolerance approach to fraud and financial irregularity, stating, "We will report all suspicions of fraud relating to this scheme to West Midlands Police." This strict stance ensures that support reaches those who genuinely need it. The Birmingham Voluntary Service Council's (BVSC) Hardship Grant Community Fund (HGCF) is an element of the council's overall Household Support Fund (HSF) initiative.

Who Can Apply for Birmingham City's £200 Cost of Living Payment?

The council will be accepting applications until September 30, 2024, or until the entire fund has been expended, whichever comes first. To be able to qualify, you must reside in Birmingham resident and must be enduring financial hardship, notably when it comes to affording food and energy costs.

You can only apply for the £200 grant if your household hasn't received one in the last year. If you're having trouble filling out the form online, you can call 0121 634 7100 for assistance. The council is encouraging those facing difficulties in the Second City to make use of this support.

State Pensioners in Scotland Can Benefit from the Winter Heating Payment This Winter

A lesser-known and often underclaimed benefit, the Winter Heating Payment, is available to eligible households in Scotland this winter, according to Express.

This payment aims to help with heating costs during the colder months and is automatically issued to those who qualify. It doesn't require any application, as the payment will be sent directly to eligible households between December and February. Unlike the Winter Fuel Payment, this benefit is specifically for Scottish residents and offers much-needed relief for those struggling with energy bills during the winter season.

In contrast to Cold Weather Payments, which depend on specific temperature thresholds, the Winter Heating Payment is guaranteed to be issued to eligible households regardless of how cold it gets.

Winter Heating Payment to Support Eligible Households

To qualify for this assistance, households must be receiving the correct benefits by November 4 this year.  The government said: “The next qualifying week is 4 November to 10 November 2024. Your data tells Social Security Scotland if got one or more of the qualifying benefits at some point during this week.”

Universal Credit, Pension Credit, Income Support or Income-Based Jobseeker's Allowance, and mortgage interest support are all among the qualifying benefits.

The government went on to say, "You will automatically receive the single payment between December and February." This is independent of the degree of cold.

“You'll get a letter or an email from Social Security Scotland telling you it's coming. It appears as 'WHP' on your bank statement, WHP stands for Winter Heating Payment.

“Winter Heating Payment will be paid from December 2024 and will be £58.75.”

Cold Weather Payments are also available in England, automatically providing financial assistance to pensioners if the temperature in an area falls below a specific threshold for a specific period.

DWP Unveils Measures to Reduce PIP Evaluation Delays

The minister for Social Security and Disabilities at the DWP, Sir Stephen Timms, stated that additional Case Managers have been recruited in order to “meet increased demand for PIP, which means we are now in a position to begin to deploy additional resources onto award reviews”.

He emphasized how delivery of functional assessments recently switched over to a new contract and DWP “ will be taking steps to ensure they have sufficient capacity to deliver the required volume of assessments”. However, he highlighted that this “may take time and there is an extensive training period for new Healthcare Professionals to ensure quality standards are maintained”.

The DWP Minister announced a great deal of new measures set to reduce PIP evaluation delays. It’s crucial to note that PIP payments due to a review are automatically prolonged to make sure all claimants are paid respectively.

Streamlining PIP Assessments and Support

Mr Timms provided a written response to Labour's MP Katie White explaining how some PIP claimants with long-term health issues may not require attending face-to-face assessments, since a Case Manager could make a decision according to the previously provided information, adding that the majority of assessments are now conducted over the phone. Mr Timms outlined the new measures in place to “increase efficiency and move cases through the system more quickly”. These include:

• Where sufficient evidence/information is available, Case Managers can make decisions on reviews, avoiding the need for a functional assessment, which means many customers receive a decision faster.
• Healthcare Professionals now complete most assessments by telephone, which means the vast majority of customers who need an assessment do not need to attend a face-to-face appointment at an Assessment Centre.
• The DWP has introduced a change for customers with the most severe conditions, on the highest level of support, who now receive an ongoing PIP award which is only subject to a ‘light touch review’ every 10 years.

The campaign started right after Chancellor Rachel Reeves announced the changes at the end of July, with the policy adjustment taking effect on September 16, reports Daily Record.

Millions of Pensioners at Risk as Winter Fuel Payments Eligibility Rules Change

The eligibility rule change date was set to coincide with the beginning of the qualifying week for this year’s Winter Fuel Payment, September 16 to 22. Despite the Parliament's strong opposition last week, Labour’s plans passed. This implies that around 10 million pensioners; including 850,000 in Scotland, will miss out on energy bill assistance worth up to £300, unless they qualify for an income-related benefit like Pension Credit.

Age UK’s petition warns the eligibility rule change will affect millions of pensioners who rely on the additional financial assistance to cope with the growing heating costs during the winter months.

The charity stated: “We strongly oppose the means-testing of the Winter Fuel Payment because it means as many as 2 million pensioners who badly need the money to stay warm this winter will not receive it and will be in serious trouble as a result.

“Means-testing the Winter Fuel Payment, with no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy choice, and one that will potentially jeopardise the health as well as the finances of millions of older people this winter — the last thing either they or the NHS needs.”

Winter Fuel Payment Cutbacks Spark Push for Pension Credit

It's worth noting that the rule change will impact pensioners all over Scottland, England, and Wales Northern Ireland and even those who live abroad.

It also implies that the introduction of Pension Age Winter Heating Payment, which will replace Winter Fuel Payment for Scottish pensioners, has been delayed until winter 2025/26.

The Department for Work and Pensions (DWP) launched a new campaign that aims to boost the adoption of Pension Credit, which represents an entry-level benefit for Pension Credit and extra help with Council Tax and housing costs.

They are also collaborating with local authorities all over Great Britain in order to connect Housing Benefit with Pension Credit. Claimants who can potentially qualify for Pension Credit will be invited to submit their applications for the benefit.

Sir Keir Starmer and Chancellor Rachel Reeves insist on the importance of the decision, which according to them will help address a £22 billion ‘black hole’ the Conservatives left behind. Nearly 71% of disabled pensioners and 83% of those aged 80 or over are now set to lose the payment. People will only get the money if they meet the qualifying criteria.

DWP Confirms Winter Fuel Payment Cuts Will Hit 1.6 Million Disabled Pensioners

The Department for Work and Pensions (DWP) has quietly confirmed that the decision to introduce means testing for the Winter Fuel Payment will disproportionately affect disabled retirees, reports BirminghamLive.

DWP data reveals that 1.6 million disabled individuals will be excluded from the benefit, making up nearly 71% of all disabled pensioners. Additionally, 2.7 million people aged 80 and over, along with 7.3 million individuals between 66 and 79, will no longer qualify for the payment.

4.7 million people who are projected to lose payments live alone, which may exacerbate the financial strain they face. Sir Steve Webb, former Liberal Democrat pensions minister, said: "It is shocking that this impact assessment has appeared late on a Friday evening, three days after MPs voted on the issue.

Age UK Criticises Government Over Winter Fuel Payment Cuts for Disabled Pensioners

Caroline Abrahams from Age UK, a leading charity, pointed out that the Government's data shows significant cuts to Winter Fuel Payments for disabled pensioners. She stated, "The Government’s own figures show that seven in 10 disabled people over pension age will lose their winter fuel payment, and more than eight in 10 of those aged 80 or over."

She explained: "The reality is that driving through this policy as the Government is doing will make millions of poor pensioners poorer still and we are baffled as to why some Ministers are asserting that this is the right thing to do. We and many others are certain that it is not, and that's why we will continue to stand with the pensioners who can't afford to lose their payment and campaign for them to be given more Government support.

"Meanwhile, winter is coming and we fear it will be a deeply challenging one for millions of older people who have previously relied on their Winter Fuel Payment to help pay their energy bills and who have no obvious alternative source of funds on which to draw."

Pension Credit and Winter Fuel Payments

Pensions Minister Emma Reynolds clarified in a written response to Labour MP Sarah Champion that pensioners on Attendance Allowance and with limited incomes could be eligible for Pension Credit, provided all criteria are met. She emphasized that low-income pensioners receiving Attendance Allowance may receive extra financial support through Pension Credit.

Reynolds further explained that Attendance Allowance is determined by a person's ongoing need for personal care or supervision rather than a specific medical condition. This benefit is non-contributory, tax-free, and unaffected by other income or savings. Winter Fuel Payments will continue for households where someone receives Pension Credit or other income-related benefits, offering £200 for eligible households or £300 for those with members aged 80 and over.

Applications for Pension Credit filed by December 21, 2024, may qualify for a backdated Winter Fuel Payment.

A Highly Under-Claimed Benefit

Pension Credit remains under-claimed despite its importance, with around 1.4 million older adults in Great Britain, including over 125,000 in Scotland, currently benefiting from it. This benefit can provide up to £4,000 of extra financial support annually, yet approximately 880,000 eligible pensioners are not claiming it.

Many pensioners mistakenly believe that their savings or homeownership disqualify them from receiving this support. However, even an award of £1 per week can unlock further assistance, including help with housing costs, heating bills, and Council Tax.

Who Should Check Eligibility for Pension Credit?

There are two forms of Pension Credit: Guarantee Credit and Savings Credit.

Guarantee Pension Credit

To qualify, you must:

• Be of State Pension age (66).
• Have a weekly income below £218.15 (single) or £332.95 (couple). These amounts may increase if you are disabled, a carer, or have certain housing costs.

Savings Credit

Eligibility requires that you:

• Reached State Pension age before April 6, 2016, or have a partner who did.
• Have qualifying income of at least £189.80 a week (single) or £301.22 a week (couple).

Pension Credit Payment Amounts

• Guarantee Credit tops up income to £218.15 a week for a single person or £332.95 for a couple.
• Savings Credit offers up to £17.01 a week for a single person and £19.04 for a couple, depending on income and savings. Income is calculated based on savings above £10,000.

How to Check Eligibility for Pension Credit

To determine eligibility, older individuals or their loved ones can use the Pension Credit calculator on the GOV.UK website. Alternatively, claims can be made by calling the Pension Credit helpline at 0800 99 1234, open Monday to Friday from 8 am to 6 pm. Additional support is available from Independent Age, Income Max, Citizens Advice, and Age UK.

State Pension Cuts Could Extend to Concessionary Benefits in Upcoming Autumn Budget

According to Daily Record, some 10 million retirees are going to miss out on annual heating bill assistance valued between £100 and £300 because they do not receive an income-related benefit such as Pension Credit.

Following the Prime Minister's recent response, pension cuts may not end there. During Prime Minister's Questions on Wednesday, Conservative MP Louie French described the cutbacks in Winter Fuel Payments as a “disgraceful political decision” before urging him to “rule out scrapping concessionary travel fares and Council Tax discounts, which also help millions of pensioners across the UK”.

Nevertheless, Sir Keir opted out of answering the questions and responded saying: “I am not going to pre-empt the Budget. It will all be set out in due course.”

Both the Prime Minister and Chancellor Rachel Reeves have been hinting at further cuts in an attempt to restore economic balance in the government's budget, but neither has indicated where they could come. There is growing speculation that the Autumn Budget on October 30 may include changes to Capital Gains Tax, Inheritance Tax, the ISA allowance, and the personal savings allowance.

Council Tax and Travel Changes Unlikely to Affect Scotland's Devolved Schemes

According to The Telegraph, council tax is another option under consideration; however, it is unclear how any changes will effect residents in Scotland, as banding is determined by the Scottish Government.

Similarly, if adjustments to concessionary travel are brought about, they are unlikely to impact those living in Scotland because the scheme is also set up and run by devolved authority.

In Scotland, the National Entitlement Card (NEC) grants access to a range of public services, including free bus travel for seniors and disabled individuals. The Strathclyde Concessionary Travel Scheme also provides discounts on train, subway, and ferry journeys.

For those aged 60 and above, the card is lifelong, provided they remain in Scotland. However, for others, particularly those with disabilities, the card is typically valid for three years before requiring renewal.

In England, the concessionary travel scheme offers free local bus travel exclusively to elderly and disabled people on bus routes within the country.

DWP Faces Criticism Over Winter Fuel Payments and Pension Credit Eligibility

In a few days, only individuals over State Pension age who are receiving income-related benefits, such as Pension Credit, Tax Credits, and other means-tested support will be eligible for the Winter Fuel Payments.

Consequently, around 10 million pensioners, including 850,000 in Scotland, will not get the annual heating assistance. Labour MP Rachel Maskell has criticised the move, urging the DWP to explore other options, such as basing payments on Council Tax bands or linking them to tax payments.

Pensions Minister Emma Renolds issued a written response on Thursday stating that Winter Fuel Payments based on Council Tax banding “would not be possible”, she also added that “Council Tax banding is not always an accurate reflection of someone’s income”.

Ms Reynolds responded to the plan to tax winter fuel payments by saying:“Matters of taxation are for His Majesty’s Treasury. The tax treatment of social security benefits is based on the type of payment and why it is provided.

“In general, benefits that are designed to replace income are taxable, including the State Pension. Benefits that meet specific costs, such as Winter Fuel Payments, are not taxable.”

In a separate written question, Ms Maskell called on the Department for Work and Pensions (DWP) to “contact every pensioner on Housing Benefit to encourage them to take up Pension Credit”.

The Pensions Minister replied: “The Deputy Prime Minister and the Secretary of State for Work and Pensions wrote to all local authorities on 20th August.

“We are asking that local authorities support our national Pension Credit campaign and help us reach those eligible pensioners who have not claimed Pension Credit, so they continue to receive an annual Winter Fuel Payment.”

She noted that, following last year's 'Invitation to Claim' pilot, the DWP will contact around 120,000 senior households who receive Housing Benefit and may be entitled for, but aren't yet claiming, Pension Credit.

She also stated that they will be encouraging households to apply for Pension Credit before the 21 December backdating deadline to ensure that eligible applicants also qualify for a Winter Fuel Payment.

DWP Launches Campaign to Boost Pension Credit Take-Up Amid Winter Fuel Payment Changes

Replying to a number of written questions from MPs worried about the Winter Fuel Payment adjustment, the Pensions Ministers emphasised that the DWP is working with "external partners, local authorities, and the devolved governments to boost the take-up of Pension Credit".

However, while addressing a written inquiry from Democratic Unionist Party MP Gregory Campbell, she was unable to specify how many seniors she would like to see sign up for a nationwide TV and radio campaign that begins on Monday.

Ms Reynolds replied: “No targets have been set, the Government wants everyone eligible for Pension Credit, but not currently claiming it, to receive the benefits they are entitled to.

“DWP launched the Pension Credit Week of Action on September 2, joining forces with national charities, broadcasters and local authorities to encourage pensioners to check their eligibility and make a claim.

“From September 16, we will be running a national marketing campaign on a range of channels. The campaign will target potential pension-age customers, as well as friends and family who can encourage and support them to apply.

“Our future campaign messaging will also focus on encouraging pensioners to apply for pension credit before December 21 2024, which is the last date for making a successful backdated claim for Pension Credit in order to receive a winter fuel payment.”

Deadline to Boost State Pension by Buying Missing NI Years Approaching, Warns Martin Lewis

The finance expert has highlighted how the deadline for buying back lost National Insurance years on your personal tax return is right around the corner.

Since the amount you earn in your state pension is based on the number of years of National Insurance contributions you have on history, if you're missing years from your back catalogue, you may enhance your state pension considerably by buying them back

For every £800 you spend to fill a missing year of National Insurance (NI), you could see an average increase of £6,100 over time in your pension, according to Martin Lewis.

The closer you are to retirement, the more beneficial it is to make up for any gaps in your NI record. However, if you're under 45 (born after 1979), it’s usually not worth it unless you have significant gaps in your history.

Martin also mentioned that the deadline to fix this is April 2025, and while that may seem far off, the process can take months to complete. Since the deadline is strict, once it passes, you'll no longer have the chance to boost your pension by buying these missing years.

Martin Lewis Explains How Buying NI Years Can Boost Your State Pension

Martin Lewis has issued crucial advice on how filling gaps in your National Insurance record could significantly boost your state pension. He advised his audience, "If you have gaps between 2006 and 2018, you need to think about this this year because you can only do it until next April.

"If you're nearly at the state pension age it's easy to see, it's pretty obvious that you should be buying them."

"The older you are, the more likely you should be. If there are no gaps after 2019, then you could buy those so you could wait and see."

Martin Lewis pointed out that if you're under 45, it’s probably not worth buying back National Insurance years unless you have very cheap partial years available. He added, "If you can buy a year for as little as £16, it might be worth doing just in case you miss future contributions, as the potential value is huge."

He also highlighted the importance of having at least 10 qualifying years to get any state pension. "If you’ve only got three years and buy three more, you’ll still fall short of the 10-year requirement," he said.

However, Lewis explained that if you have nine years and can buy just one more, you'll qualify for 10/35ths of the full pension. This could be highly lucrative, as that £800 investment could bring you £3,000 a year in pension payments. So, for those with limited qualifying years, it could be either highly beneficial or not worthwhile, depending on their situation.

He explained that by adding £6,100 to your state pension each year, you could accumulate up to £74,000 extra over your lifetime if you live to the average life expectancy for women.

Pensioners Born Before September 22, 1958 Eligible for Winter Fuel Payment

Retired people on Pension Credit and other qualifying benefits are eligible for the Winter Fuel Payment. This year, however, not all pensioners will be able to get the money like they used to. Those eligible will receive the payment in November or around Christmas time.

The payment is meant to assist the most impoverished pensioners born before September 22, 1958 pay for their heating bills during the cold season. However, the Labour Government's decision to cut the payments for many has stirred indignation.

Pensioners Urged to Check their Eligibility for Pension Credit

Pensioners who do not receive Pension Credit are being urged to check if they qualify for it, as it represents a major qualifying benefit. As many as 900,000 people are not claiming Pension Credit even though they are eligible for it, this implies that many will not be able to claim the Winter Fuel Payment.

Age UK stated: “The Winter Fuel Payment is an annual payment to help you with heating costs during the colder months. The Government announced in July 2024 that, from this year onwards, to be eligible you must have reached state pension age and also receive a qualifying means-tested benefit.

“Winter Fuel Payment is an annual tax-free payment for households that include someone born on or before September 22, 1958 (for 2024-25) and, from 2024 onwards, receive Pension Credit, Universal Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance, or an award of Child Tax Credit or Working Tax Credit of at least £26 for the tax year 2024-25.

“If you are over state pension age and receive a qualifying benefit, you could get £200 towards your bills. If you are over 80, you could get £300 to help with your bills in winter this year. Payments are made to the person claiming the benefit and are for the household.”

According to Daily Record, experts advising the Labour Government on how to tackle the ‘greatest employment challenge for a generation’ met with the Work and Pensions Secretary for the first time on Monday.

New DWP Labour Market Advisory Board to Address Economic Inactivity and Unemployment Challenges

The new Labour Market Advisory Board, selected by Liz Kendall MP the Work and Pensions Secretary, includes experts from across business, industrial relations and academia. During its initial meeting, members suggested new schemes to address government work on unemployment, tackling the main reasons that keep people from joining the workforce, including physical and mental health issues, and the ways in which the group can provide its assistance to the government in order to reach its 80% employment goal.

The board will come up with new initiatives for the Work and Pensions Secretary to think about as she aspires to bring down the economic inactivity rates, as the UK is the only G7 country whose employment and inactivity levels haven’t rebounded to pre-pandemic rates.

Work and Pensions Secretary, Liz Kendall MP, stated: “Spiralling inactivity is the greatest employment challenge for a generation, with a near record 2.8 million people out of work due to long-term sickness. Addressing these challenges will take time, but we’re going to fix the foundations of the economy and tackle economic inactivity.

“The board’s knowledge, expertise and insight will help us to rebuild Britain as we deliver our growth mission, drive up opportunity and make every part of the country better off.”

DWP Board Targets Health-Related Economic Inactivity

The Board’s initial meeting will study the effect that physical and mental health issues have on inactivity and the methods the Government can employ to push more people into the workforce.

According to the Official for National Statistics' latest figures released on Tuesday, Scotland's unemployment rates for people aged 16 and above was 4.2% between May and July 2024. This was 0.5% down on the last quarter but over the UK-wide unemployment rate of 4.1%

Paul Gregg, Chair of the Labour Market Advisory Board, stated: “Having studied the UK’s labour market across several decades, it is clear that the current labour market faces a deep-seated set of challenges. We have seen a sharp increase in economic inactivity and long-term sickness, most notably in our young people post-pandemic.

“Further, real wage growth has been heavily suppressed for 15 years hitting living standards and government tax revenues. Reversing these trends will be key to ensuring the long-term prosperity of the UK’s labour market.”

The Secretary of State is also anticipated to release her plans to delegate power to local areas so they can address unemployment with adequate work, health, and skills plans, which are expected to be released in a White Paper this autumn.

However, this amount is still far below  what is required to provide a decent retirement. Even worse, many people will not receive the full amount.

State Pension Increase of £460 Next April, But Older Pensioners to Miss Out on £107

According to Express, millions of retirees will receive thousands of pounds per year less. Some will receive as little as half of that amount, prompting resentment and bewilderment among many pensioners.

With the triple lock, the state pension increases annually in accordance with wages, inflation, or 2.5%, whichever is higher. Earnings have beaten inflationlately to climb by 4% between May and July, and are anticipated to drive next year's gain.These are the three months used to calculate the forthcoming triple lock rise. That means an additional £460 in the coffers of individuals who receive the maximum amount.

SunLife's CEO Mark Screeton highlighted how this is insufficient to fund a comfortable retirement. According to the Pensions and Lifetime Savings Association, "A single person needs £14,400 a year just to achieve a minimum standard of living in retirement. A moderate standard requires £31,300.”

The worst part of it all is that not everyone is eligible for the entire new state pension. Approximately nine million people who retired before April 6, 2016, continue to receive the previous basic state pension.

They receive a maximum of £8,814 this year, which is £2,688 less than today's full new state pension. A 4% raise would bring that to little about £9,167 next April. That is an increase of £353. This is £107 lower than those who will receive the new state pension. The disparity between the two will have expanded yet again. It will cost an astounding £2,795.

Older State Pensioners Facing Widening Pension Gap and Benefit Losses

Many older pensioners receiving the minimal state pension feel mistreated. Especially when the gap between the basic and new state pensions would expand year after year.

Both pensions rise by the same the amount under the triple lock, but the new state pension has a greater starting point, so each year's increase is more valuable in financial terms. In the near future, the state pension gap will exceed £3,000 per year. And it will not end there.

Nonetheless, many people get more from the basic state pension. That's because they received supplementary state pensions, such as the state second pension (S2P) or the state-earnings-related pension system (SERPS).

Typically, older males perform better because they are more likely to work and pay national insurance (NI), which increases their supplementary entitlement. Older women, who were far less likely to work and contribute to NI, frequently survive on a poor pension.

Older people are not the only ones falling between the cracks. According to new data, many people receiving the new state pension are suffering because they did not make enough NI contributions or NI credits.

A mere fifty percent of the 3.5 million claimants of the new state pension receive the entire amount. An estimated 150,000 elderly receive less than £5,000 each year.

Sarah Pennells, a consumer finance specialist at Royal London, cited gaps in their NI record. "Some had low earnings, while others were either unemployed but didn't claim benefits, or worked abroad."

While many can make up the difference by applying for means-tested top-up Pension Credit, nearly a million people who are eligible do not do so.

In addition, chancellor Rachel Reeves has announced that they would no longer get their Winter Fuel Payment. This will cost them an additional £200, or £300 if they are over 80.

And when colder weather approaches, seniors will lose more than just governmental help. As I previously documented, some of the poorest retirees might lose up to £900 in cost-of-living allowances provided by the Conservatives but not by Labour. Losing these benefits might cancel out next year's triple lock increase, making millions of retirees feel worse in actual terms.

This comes ahead of a crucial vote as the Labour Party debates welfare cuts proposed by the Department for Work and Pensions (DWP). These cuts are expected to focus solely on Pension Credit recipients, a move that has sparked concern among members of Parliament.

Concerns Over Health and Welfare

Rachael Maskell, a Labour MP, voiced her apprehension in The Telegraph, particularly about the health risks for those impacted by these cuts. She remarked:

"We know that being cold leads to stroke, heart attacks, pneumonia, hyperthermia and so much more as the body wrestles to keep warm, and viruses prey on the frail."

She further warned that removing winter fuel payments for those in fuel poverty could result in a significant rise in preventable deaths during the colder months.

Internal Tensions and Growing Dissent

There is also growing unrest within the Labour Party. One MP expressed their dissatisfaction with the decision to maintain policies like the two-child benefit cap and the proposed cuts to winter fuel payments, saying:

"There's people right across the political divide who are very unhappy. They need to consider a u-turn over the winter fuel payments. I think this is going to ramp up, there's a lot of angry people out there."

Triple Lock and Government Support Measures

Commons leader Lucy Powell defended the government's position, attributing the tough decisions to the economic situation inherited from the previous administration. She noted that while the winter fuel payment is now subject to means testing, the government is committed to supporting pensioners through various measures:

• The Triple Lock increase, which raised state pensions by £900 this year.
• The Warm Home Discount, worth £150.
• The extension of the Household Support Fund.
• A nationwide campaign to ensure eligible pensioners receive Pension Credit.

Powell also highlighted that a parliamentary vote on the winter fuel payment is scheduled for next week, emphasizing the importance of debate and transparency:

"We are not afraid to have the debate about how we have got to where we have got to... because we respect Parliament and we respect doing things properly."

Significant Impact on Eligibility

The changes to the Winter Fuel Payment will drastically reduce the number of pensioners who qualify, from 11.4 million to just 1.5 million under the new criteria. This move is projected to save the Treasury around £1.4 billion this financial year, a key factor in the government's financial strategy.

Martin Lewis Urges State Pensioners to Claim Pension Credit Amid Winter Support Cuts

Many state pensioners are set to face a particularly challenging winter this year as the Winter Fuel Allowance transitioned to a means-tested benefit, so those who previously received the £300 handout would no longer be eligible.

With the £300 Cost of Living payment for pensioners being cut, many will face winter with less financial support. According to Express, Martin Lewis is urging people receiving a state pension to check if they qualify for Pension Credit to at least claim back £300 this winter through a single phone call.

Martin Lewis states: “It’s become more crucial than ever [to claim Pension Credit] because that Winter Fuel Payment that up to £300 payment that did to go every pensioner is now dependent on Pension Credit.

“So, Pension Credit, now I’ve been shouting about this here and everywhere and on my site for many years and it is chronically underclaimed.

“So the most important thing I can say to everybody watching who may be eligible is those over 66 but also right across society, is many of our most vulnerable people are not claiming this crucial payment and we collectively have a responsibility to try and let them know about it.”

State Pensioners Advised to Check Income Levels for Pension Credit Eligibility

The finance expert emphasized that single pensioners earning less than £235 per week and couples receiving less than £350 should check as they could be entitled to the payment.

Those who don't claim the state pension and who receive Pension Credit equivalent to the full amount would then get £218 a week, amounting to £11,300 a year.

He went on to say “If you’re a single pensioner and you have total weekly income under £218 a week, you will likely get it, if it’s under £235 a week you will maybe get it but it’s still worth checking.

“If you’re a couple - both of you are state pensioners living together - then my rule is you should check if it’s under £350 total weekly income.

“Under £333 you’re likely to get it, under £350 there’s a chance.

“If you’re a state pensioner and your partner isn’t a state pensioner you can’t get it this way but you may still be eligible if your partner is claiming Universal Credit.

“The most complicated thing is, total weekly income is any money from work, private pension, state pension and any benefits are included, plus if you have over £10,000 savings or investments, then for every £500 you are over that they count that as £1 a week income.

“Which actually works out at a 10 percent return, chance’d be a fine thing.”

The DWP has confirmed that older individuals in a specific age bracket will receive additional weekly State Pension payments.

State Pensioners Over 80 May Qualify for Extra Financial Support

The 'Over 80 Pension' is accessible to people who have met the Labour Party government's qualifying retirement age and have made at least ten years of National Insurance (NI) contributions. Pensioners above the age of 80 may be eligible for further financial help.

You are not entitled to the over 80 pension if you attained State Pension age on or after April 6, 2016. You may apply for the over 80 pension if you are 80 or older and do not receive basic State Pension or if your basic State Pension falls below  £101.55 per week in 2024-2025.

You may qualify if you lived in the UK for at least ten years out of a twenty-year period, which doesn’t have to be consecutive. This twenty-year period must include the day before you reached 80 or any day after. Alternatively, you can qualify if you were 'ordinarily resident' in the UK, the Isle of Man, or Gibraltar the day you tutned 80, or on the date you submitted the claim for this pension, whichever is later.

How to Qualify for the Over-80s Pension and Increase Your Weekly Payments

Your eligibility for the over-80s pension is not determined by National Insurance contributions. What you get is determined by the amount of basic state pension you receive, if any. If you do not receive the standard State Pension or earn less than £101.55 per week, you may be eligible to receive the difference up to this amount.

This means that if you are 80 years old and currently receive £43 per week in basic State Pension, your pension could potentially increase by £58.55, bringing your total to £101.55 per week. To apply, you can obtain a claim form from your local Jobcentre Plus or the Pension Service.

It's worth noting that you have the option to start your claim as early as three months before your 80th birthday, giving you enough time to ensure your increased pension begins on time.

Labour’s New Household Support Funding to Address Cost of Living Pressures

As reports BirminghamLive, Labour will supply an additional £421 million starting this October until the end of March. Work and Pensions Secretary, Liz Kendall MP, emphasized that this funding will be used to help those in need. She encouraged pensioners and others struggling with the cost of living over the colder months to contact their local council to explore available support options.

Regarding the extension to the Household Support Fund, Morgan Vine, Head of Policy and Influencing at Independent Age, stated: “Thankfully this fund will now be available through the winter months to support people of all ages in financial hardship with bills and other essential costs.”

Vine acknowledged the extension as a positive development but pointed out that “it won’t undo all of the potential damage that could be caused by means testing the Winter Fuel Payment, with millions of older people on a low income set to miss out on this vital support.” Vine also highlighted that people experiencing poverty in later life need “more money in their pocket now, as well as long-term strategic plans - such as the introduction of a national energy social tariff - to improve their future.”

Independent Age Urges UK Government to Reconsider Winter Fuel Payment Changes

In the short term, Independent Age is calling on the UK Government to “delay plans to tie the Winter Fuel Payment to Pension Credit as far too many older people in financial hardship will fall through the cracks.” Vine noted that “currently there are up to 1.2 million eligible older people missing out on the Pension Credit they’re entitled to.”

Additionally, there is concern about “the large group of older people that are just above the Pension Credit eligibility threshold,” who face having their income cut at a challenging time of year with rising energy prices.

“We are ready to work with the UK Government to help identify solutions and reach older people living in poverty. Nobody in later life that needs financial support should be left behind,” Vine concluded.

State Pension Set for Significant Boost Following Triple Lock Support

According to the Express, changes would bring the full state pension to about £12,000 in 2025/26, following a £900 increase in 2023. Those who retired before 2016 who may be qualify for the secondary state pension could enjoy a £300 annual rise.

The new state pension scheme was implemented in 2016 to create a stable, predictable system upon which people can develop their private savings. Any decision regarding a pension rise will be taken by Secretary of State Liz Kendall before the October budget. On Monday, Chancellor Rachel Reeves confirmed the government's support for the Triple Lock until the end of the current Parliament.

The Triple Lock mechanism automatically boosts the state pension by a maximum of three measures beginning in April of each year. These are the rates of inflation, average pay growth, and 2.5 percent.

State Pension Shortfall Exposed Amid Winter Fuel Allowance Cut

The report comes following a pushback against the government's decision to eliminate the Winter Fuel Allowance for a great number of pensioners.

According to a recent analysis, just around half of those who received the new state pension last year received the entire weekly amount, with approximately 150,000 earning less than £100 per week.

According to Royal London, 1,737,342 of the 3,407,567 people eligible for the new pension were paid the full weekly sum the previous year.

The estimates were done using the DWP's data from the spring of 2023. The full state pension for 2024/25 is £221.20 per week, an increase from £203.85 last year.

DWP Offers State Pensioners Extra Support to Ease Cost of Living Pressures

The Department for Work and Pensions (DWP) offers several benefits to help seniors manage the ongoing cost of living issue.

Along with weekly state pension payments that currently support over 12.6 million Britons aged 66 and older, pensioners also have access to various benefits such as free dental treatment, a free TV licence, and council tax discounts, according to the Express.

Council Tax Discount: £2,171

People receiving state pensions may be eligible for a Council Tax discount, which might result in major savings on their annual expenses. A person's eligibility for this discount is determined by variables including their income, where they live, and if a retired person lives alone or with individuals who are exempt from paying council tax.

People on a tight budget or receiving benefits such as Pension Credit are a greater probability to qualify, hence checking with your local council to see what assistance is available. The amount of discount differs, nevertheless some people are eligible for up to 100% off.

Free TV Licence: £169

People living in Britain aged 75 and over who receive Pension Credit are eligible for a free TV licence, which could potentially save £169 annually.

Those who have paid for a TV Licence when they were qualified for a free one may be entitled to a refund. TV Licensing stated that in certain cases, the refund will be processed as part of the application.

Free Dental Treatment: £282

Brits can get free dental care if they or their partner receive particular benefits, which could potentially save them hundreds of pounds each year. Qualifying benefits include:

• Income-based Jobseeker's Allowance
• Income-related Employment and Support Allowance
• Income Support
• Pension Credit Guarantee Credit
• Pension Credit Guarantee Credit with Savings Credit
• Universal Credit (depending on earnings)

Social tariffs: £234

A vast variety of broadband providers provide discounted social tariff packages, and according to Ofcom, monthly rates now range from £10 to £23.00. Social tariffs are available to persons with low incomes or who get specific benefits, and they are much less expensive than standard deals.

Free Bus Pass: £128

State pension recipients are entitled to free bus travel across the country, resulting in an average annual savings of £128 depending on the cost of bus tickets and how frequently pensioners use the free tickets.

Meanwhile, London residents over the age of 60 have free access to public transit, including trips on trains, buses, and the Underground.

Free Insulation: £1,000

The Great British Insulation Scheme may provide people with free or low-cost insulation to help them save money on their home's energy bills. Households may receive support if their home:

• Offers an energy performance certificate (EPC) from D to G (check EPC).
• Is in Council Tax bands A to D in England, or A to E in Scotland and Wales (see Council Tax band).

Water Bill Discounts: £160

According to Money Saving Expert (MSE), 5.7 million households could cut up to £160 on their water bills each year thanks to social tariff support schemes.

These initiatives are typically offered to people with a household income of below £17,005 (excluding benefits), or £21,749 if they reside in a London Borough.

Free Prescriptions: £118

People over the age of 60 can receive free prescriptions from the NHS, which can result in significant savings given this year's price increase.

If able to qualify, people can often access free medication from a pharmacy for mild illnesses through the NHS minor ailments plan.

Currently, the scheme is extensively offered in Northern Ireland, Wales, and Scotland, but only in a few pharmacies throughout England. The drugs covered by the system may also vary depending on where the person lives, thus it is recommended that consumers speak with their local pharmacy regarding the medications they offer.

Raising Pension Contributions Could Significantly Increase Retirement Savings

According to Standard Life analysis, increasing contribution levels may significantly raise a typical retirement fund to £651,000 in today’s terms when the workers reach retirement age. This comes in light with the latest effort by the UK Government giving a Pensions Review which, among other things, looks at the state of the country’s long term savings and investments and seeks to “boosting growth and making every part of Britain better off.”

Currently, the employee and employer-share for the minimum auto-enrolment contribution is made up of 5% and 3% respectively, making it a total of 8%. With the findings of Standard life, they recommend that if these contributions were raised to include 12% with par contributions from both parties of 6% each, there would be additional value benefits from retirement savings. For example, a person who is 22 years of age and earns £25000 each year will be able to enhance his retirement savings from £434,000 under the current structured scheme to £651,000 after the increase.

Gail Izat, Managing Director for Workplace Pensions at Standard Life, commended the Government's focus on savings adequacy in the ongoing Pensions Review. She emphasized the importance of building on the success of auto-enrolment, which is nearing its 12th anniversary, by increasing contribution rates to ensure a more secure retirement for workers. Izat highlighted that other countries, like Australia, have seen improved retirement outcomes with higher mandatory contribution rates.

Addressing the Pension Savings Gap

There are concerns about around 17 million UK adults are unable to save enough now to achieve the necessary income at retirement, and this factor necessitates increased contribution. Though auto-enrolment has played a key role in improving pension coverage among the UK population, it is feared that the existing contribution levels may not be sufficient to fulfil the retirement income ought to be.

In particular, Patrick Thomson, Head of Research Analysis and Policy of Phoenix Insights, said that there are major problems with underestimating the necessity to save into a pension by people. He also said that the more likely issue that works with people in the future contributing to the level of the current statutory contribution rate, thinking that it meets their retirement requirements.

Thomson maintained that it is the hope of the Government’s review that it will result in higher minimum contributions when the economic circumstances permit it.

Consultant Mercer also supports the advancement of auto enrolment, for instance minimum contribution rate should be increased to 12% and enrolment age should be lowered to 18 rather than 22. They further suggest including gig economy workers, as well as finding a solution to the pre-retirement female gap concern.

In addition, Mercer also called for the merging of several individuals defined contribution plans as well as an enhancement of regulation surrounding the master trust market as a means to achieve better investment performance at retirement.

Winter Fuel Payment Cuts Prompt Expanded Support from Energy Provider

Chancellor Rachel Reeves announced on July 29 that the payment, which ranges from £100 to £300, will now only be provided to around 1.5 million state pensioners who receive means-tested benefits like Pension Credit.

The recent eligibility changes imply that millions of pensioners who previously received the Winter Fuel Payment last year won't receive it this winter. However, Octopus Energy is extending its £30 million assistance fund to cover this winter, offering support to state pensioners who no longer qualify for the payment.

Octopus Energy’s ‘Octo Assist’ fund has already supported over 80,000 customers, including many pensioners. The financial aid is personalized to each person's situation, and applications for help can be submitted year-round.

Those who apply through the ‘Octo Assist’ fund can access discretionary credits of £50, £100, or £200.

The transfer of Winter Fuel Payment responsibilities for Scottish pensioners was planned for this year, but the rollout of the Pension Age Winter Payment has been delayed until 2025/26. Last month, the Scottish Government asserted that the new eligibility rules will also apply Scottish pensioners.

Octopus Energy Extends Support for Pensioners Amid Winter Fuel Payment Changes

Octopus Energy is also emphasizing that its rates are consistently set below the price cap, which is scheduled to rise by 10 percent on October 1. This approach saves customers from an estimated £150 million in additional energy costs each year.

Octopus Energy also provides a range of support services, including free electric blankets for customers, loans of heat loss cameras to detect and fix draughts, and personalized in-person energy-saving advice from energy helpers. Additionally, they offer 'savings sessions,' where customers can reduce their energy costs by using less power during peak times. Over the last two winters, more than 2 million participants have saved a total of £10.5 million through these sessions.

Greg Jackson, Founder of Octopus Energy Group, declared: “At times like this, we can’t expect the government to do everything - companies need to work hard on affordability too. That’s why we’ve expanded our Octo Assist fund to introduce extra support for the pensioners who need it most.

“There’s a lot of government and other support for pensioners but many don’t realise it - government data shows one in three pensioners eligible for pension credits are not claiming, so we’re training our team to help with this too."

The energy provider's advisers can also assist people in checking for unclaimed benefits such as Pension Credit.

DWP Boosts Funding to Speed Up PIP Claims Amid Labour's Welfare Reform Plans

Additional funding, including £110 million for this fiscal year and £35 million for 2025–2026, has been approved by the DWP to be supplied until September 2028 in order to expedite the processing of both new and existing claims.

A spokesperson for the DWP told BirminghamLive: “Additional funding promised in the Spring Budget to support the processing of disability benefit claims will increase system capacity to meet rises in demand. This will enable people to get the right support in a timely manner. The funding will be provided from April 2024 to September 2028.”

In order to decrease delays and free up staff time for additional evaluations of current claims, new applications should be processed more quickly. Data from October of last year indicated that there were 288,000 PIP claims pending at that time, comprising 31,000 active claims that needed to be reevaluated and 257,000 new claims that were pending a case manager's decision.

According to government documentation about the additional financing, “Award reviews can lead to a reduction in award amounts as some claimants' conditions can improve over time.” The DWP estimates that reviewing claims to make sure people are still receiving the correct amount could save up to £150 million by 2028-2029, as benefits may be reduced if it is determined that people no longer require help.

PIP Claimants Face Potential Benefit Reductions and Terminations as Labour Reviews Welfare Proposals

Over 3.5 million individuals in the UK get Personal Independence Payment (PIP), which is worth around £737 per four weeks to cover the additional expenses related to a chronic medical condition or disability. Labour has unveiled new social safety rules in response to the previous government's revision of PIP, which included substituting cash benefits with vouchers. The public consultation regarding those measures concluded on July 22, and Labour says it is reviewing the proposals and feedback before announcing its own set of welfare adjustments.

PIP benefits may be decreased or terminated ahead of this major change as more reviews are conducted to guarantee that the amounts people receive are correct, with the goal to limit growing spending. According to the most recent numbers, 48,664 of these evaluations were conducted in April 2024, with 2,971 claimants having their benefits reduced and another 7,253 having their PIP completely halted. Over the most recent quarter (February, March, and April), 20,024 persons had their PIP discontinued, while 12,591 had their payments decreased.

The DWP stated: “PIP claimants may undergo an award review during the period whilst they have entitlement to PIP. There are two types of award review:

• Planned Award Reviews: where claims undergo a planned review at set intervals to ensure a claimant continues to receive the correct award. The review point is selected based on the claimant's individual circumstances.
• Changes of Circumstance: where a PIP claimant reports changes around their condition or needs. The award is reviewed to ensure that they continue to receive the correct entitlement, which may or may not lead to a change in award.

“In either case, an AR1 form is issued (or a PIP2 form prior to 2016). The claimant is required to complete and return the form. This can lead to referral to the assessment provider (AP) or disallowance of the claim based on the information in the AR1 form or if the claimant fails to return the AR1 form without being identified as having additional support needs.

“DWP makes a decision based on AP advice and any additional evidence received. The outcome may be: a) an award (including a monetary amount of the award for both Daily Living and Mobility components, the award type and, if appropriate, the period of time that should be allowed before a further review of the award takes place); b) a disallowance due to failing the assessment; c) a disallowance due to failing to attend or participate in the assessment.

“Award review and change of circumstance assessments by DWP decision-makers are completed with or without referral to an assessment provider.”

Winter Fuel Payments Cut: Thousands Sign Petition Against Change

According to the Treasury the proposed changes would reduce the number of pensioners getting Winter Fuel Payments from 11.4 million to 1.5 million, resulting in just under 10 million missing out.

The change is expected to save £1.5 billion per year. However, Age UK has petitioned the government to reverse the decision, citing the potential impact on millions of pensioners' ability to heat their homes this winter. The petition has currently obtained over 453,000 signatures.

The petition states: “Cutting the Winter Fuel Payment this winter, with virtually no notice and no compensatory measures to protect poor and vulnerable pensioners, is the wrong policy decision. Millions of struggling pensioners won’t receive up to £300 they rely on to pay their bills.

“We believe as many as 2 million pensioners who find paying their energy bills a real stretch will be seriously hit by this cut: Those on low incomes who just miss out on Pension Credit, those with high energy needs because of disability or illness, the 800,000 who don’t receive the Pension Credit for which they are eligible.

“This cut is happening in England and Wales. In Scotland and NI decisions about the payment are devolved, and not yet clear, but it's likely that the UK Government will no longer provide the money to cover the cost of what pensioners in those nations receive now.

“The Government should halt their proposed change to the Winter Fuel Payment and think again.”

Who Can Receive Winter Fuel Payments this Year?

This winter, only those receiving Pension Credit or certain means-tested benefits will qualify for Winter Fuel Payments. If you live in England or Wales, you must be over 66 years old and receiving one of the following benefits to be eligible:

• Income Support
• Income-based Jobseeker's Allowance
• Pension Credit
• Income-related Employment and Support Allowance
• Universal Credit

This implies that if you claim the benefits below, you will not qualify this winter:

• Attendance Allowance
• Bereavement Support Payment
• Carer's Allowance
• Disability Living Allowance
• New style Employment and Support Allowance
• Personal Independence Payment
• State Pension

Inflation hit the Bank of England’s target of 2% in June for the first time in three years but climbed to 2.2% in July. While this is a significant drop from the peak of 11.1% in October 2022, it merely indicates a slower pace of rising costs, not a return to previous price levels.

Hearing that inflation is low might be good news to many of the people, but that does not mean the costs affordability is improving, rather it is just stagnated at that particular rate.

With nearly a million more people living in absolute poverty last year compared to the previous one, and millions more on the brink, the financial outlook for many UK households remains bleak.

However, there is help available. Here’s what you need to know about the financial support you can get this September.

September 2024 Benefits and Payments

Standard Benefits

In September, regular benefits and pension payments will proceed without interruption, as there are no bank holidays. These include:

• Universal Credit
• State pension
• Pension credit
• Child benefit
• Disability living allowance
• Personal independence payment
• Attendance allowance
• Carer’s allowance
• Employment support allowance
• Income support
• Jobseeker’s allowance

A report from Policy in Practice indicates that nearly £23 billion in benefits remain unclaimed annually. They provide a calculator to help determine potential entitlements. For detailed information on benefit payments, visit the government’s website.

Household Support Fund: Your Last Chance to Apply

Still struggling with household bills? The Household Support Fund (HSF), introduced in the spring Budget, has been extended until the end of September 2024. But don’t wait—local councils are in charge of distributing these funds, and they can choose how they allocate them. Whether it’s cash grants, supermarket vouchers, or help with energy bills, this could be a lifeline for your household.

To find out what assistance is available in your area, check with your local council or use the End Furniture Poverty charity’s assistance finder tool.

Other Financial Aid You Might Not Know About

There are other forms of help available that could make a real difference if you’re struggling to make ends meet:

• Budgeting advance loans: If you're on Universal Credit and face an emergency, you could borrow an advance of up to £812 (interest-free) to cover essential costs.
• Charitable grants: Depending on your situation—whether you’re disabled, a carer, unemployed, or more—you might qualify for a charitable grant. The charity Turn2us offers an online tool to help you find grants you may be eligible for.
• Energy provider assistance: Energy giants like British Gas, EDF, and Scottish Power offer help to customers struggling with their bills. British Gas even offers grants of up to £2,000 to customers of any energy provider.
• Council tax reduction: If you’re finding it hard to pay your council tax, you could be eligible for a discount of up to 100%. Contact your local council to see if you qualify for this essential support.

Don’t Miss Out on Free Childcare

Currently, working parents are entitled to 30 hours of free childcare for children aged 3 to 4. From 1 September, this measure will be extended to all children aged 9 months and over.

In order to take advantage of this, be sure to understand the process of applying before the formal onset of the September term, and also make sure to check if you are still eligible every three months.

Millions of Households at Risk of Losing Up to £8,400 in Benefits Due to Upcoming Deadlines

With the looming deadlines, millions of households risk losing up to £8,400 in benefits if they do not take immediate action. Families are therefore encouraged to claim these benefits immediately to ensure their continuous support in the coming years:

Child Benefit

Parents whose 16-19 year-old child is pursuing education or training have until Saturday to inform HM Revenue and Customs (HMRC) or risk having their Child Benefit payments cut.

This benefit is worth £102.40 per month for a single child and nearly £170 for two children, with an increase of around £67 per month for each additional child, and there is no limit to the number of children you can claim for until you go above the Benefit Cap.

Households with two children both in education, this can total £4,080 over two years. For households with two children who are both pursuing their studies for two years, this can amount to £4,080 within two years.

Even with just one child, 24 months of Child Benefit payments would total £2,457.60. If the child pursued a three-year course to the age of 19, the cost would be £3,686.40. For two children enrolled in a three-year study, the benefit can total £6,120. If this deadline is missed, thousands of pounds that could have been used to pay for educational fees could be lost.

Tax-Free Childcare

Households are also being urged to apply for a Tax-Free Childcare payout of up to £2,000 from HMRC by the deadline on Saturday, August 31.

Starting in September 2024, qualifying working parents with a child under the age of nine months will be entitled to 15 hours of childcare support. This is on top of the universal 15 hours, for a total of 30 hours of childcare when the child reaches the age of three or four.

This programme enables parents to get up to £2,000 annually per kid to help with childcare expenses, with the government contributing £2 for every £8 placed into an online account.

Winter Fuel Payment

The Winter Fuel Payment helps people with pensions deal with heating expenditures over the winter, offering from £100 to £300 to individuals who meet the eligibility requirements.

Formerly available to all UK residents over the state pension age, this year's payout is now limited to state pensioners who receive means-tested benefits such as Pension Credit. This reform, announced by Chancellor Rachel Reeves, will likely impact about 10 million people while saving the public purse £1.4 billion.

The qualifying week for the DWP's Winter Fuel Payment is September 16 through September 22. Those who are ineligible during this time will lose their winter benefits.

To receive the Winter Fuel Payment, people must check if they qualify for these benefits and submit an application before the qualifying week. Pension Credit is notably neglected, with an estimated 800,000 more people who are entitled but have not applied.

Adding together the highest sums, households in Britain might lose around £8,400 in benefits if they fail to apply before the deadlines for Child Benefit, Tax-Free Childcare, and Winter Fuel Payment.

Impact of Potential Changes to Pension Withdrawal Rules

Labour is looking at possibly changing the rules for pension withdrawals. Right now, people can take out up to 25% of their pension savings without paying any tax. But there’s talk that this tax-free portion might be lowered to 20%, which would mean more of the money would get taxed, as reported by Birmingham Live.

Because of this possible change, some people are thinking about withdrawing their pension funds now while they can still get that 25% tax-free. They want to make the most of the current rules before any new ones might come into play and potentially leave them with less money after taxes.

Understanding Pension Withdrawals and Seeking Financial Advice

Citizens Advice highlights some important details about accessing pension funds and stresses the value of getting professional financial advice. It states: "You can take your whole pension pot as cash straight away if you want to, no matter what size it is. You can also take smaller sums as cash whenever you need to.

"25% of your total pension pot will be tax-free. You'll pay tax on the rest as if it were income.

"The earliest you can start getting a defined contribution pension is usually when you’re 55 - you should check this with your pension provider. You might be able to get your pension sooner if you’re retiring due to ill health.

"You should get financial advice before making decisions about your personal or workplace pension. You might have to pay for financial advice but it can save you money long term."

£200 Winter Fuel Payment for Eligible Pensioners

This year, the Winter Fuel Payment will only be available to those with the lowest incomes. Previously, all those over 65 were eligible for the payment, but the new Labour Government has changed the criteria.

It has insisted that many higher-income pensioners do not require the payout and that assistance should be directed towards those in greatest need.

Those born before September 22, 1958, will be eligible for the £200 Winter Fuel Payment if they qualify for other benefits such as Universal Credit, Pension Credit, and Income Support.

People over the age of 80 may be eligible for up to £300. The Winter Fuel Payment is intended to assist more deprived pensioners with their energy expenditures during the colder winter months, when they will be need to use their heating more frequently.

The funds are typically distributed automatically to people who meet the requirements and are expected to arrive between mid-November and the holiday season. Some organisations have criticised the government's plan to reduce contributions this year.

Winter Fuel Payment Cuts Draw Backlash

While the wealthiest pensioners would no longer get payments, advocates believe that many people who are not very wealthy but no longer meet the threshold will lose out. Age UK has started a petition opposing the government's measures.

It stated: “The Government has announced that the Winter Fuel Payment will become means-tested in England and Wales. As many as two million pensioners who badly need the money to stay warm this winter will not receive it.

“Sign our petition to save the Winter Fuel Payment for the poorest pensioners.”

State Pension Age Could Rise to 71 as Labour Consider Changes

Currently, people in the UK can access the Department for Work and Pensions (DWP) payments once they attain the age of 66, however this may change in the future.

As of now, the state pension age is set to increase to 67 by 2026-28 and then to 68 by 2044-46.

Although MPs have previously voted on this timeline, a separate investigation is likely to determine when the state pension age will be raised to 68.

Previous assessments advised a climb to this level in 2037-39, with a 2022 review indicating a slower growth to 68 by 2041-43.

The same assessment suggested an age increase of 69 in 2046-48.

While the previous government confirmed the investigation's results, a decision on the final age increase has been deferred.

Another revision of the state pension age is promised during the first two years of the current parliament.

Experts Warn of Rising State Pension Costs and Potential Age Increases

Andrew Oxdale, deputy head of communications at financial giant Fidelity International, discussed the various possibilities for raising the age restriction.

Notably, some researchers and economists have advocated for access to the state pension at the age of 71.

This year, DWP benefits increased by 6.7 %, possibly providing hundreds of pounds of more aid to eligible individuals.

DWP Adjusts Benefits: Key Increase for Pension Credit and Attendance Allowance

Each year, the government adjusts benefits from the Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) based on the inflation rate from September of the previous year.

In September 2023, inflation was recorded at 6.7%, resulting in an increase in the value of some benefits by hundreds of pounds this year.

With more than 2.1 million retirees facing financial hardship in the UK, it is critical to ensure that loved ones receive the necessary help. Pension Credit and Attendance Allowance are greatly underclaimed, despite the fact that many more people are eligible.

These benefits can be valued up to £1,913 per month, which can significantly improve their financial circumstances.

Attendance Allowance Rates 2024

Attendance Allowance is provided by the DWP to those over the state pension age, which currently stands at 66 years old, who require assistance with personal care due to an illness or a disability.

Applicants must have a serious impairment or sickness that need personal care, and they must have required this assistance for at least the previous six months.

The benefit comes in two rates: lower and higher. The amount claimants get is determined by how much aid is required, not by how much help the person currently receives.

The updated weekly payment rates for 2024/25 are as follows:

• Higher rate: £108.55
• Lower rate: £72.65.

In 2024/2025, individuals could receive £3,777.80 annually at the lower rate or £5,644.60 annually at the higher rate. This mounts to monthly payments of £314.81 and £470.38 each.

People who already claim Personal Independence Payment (PIP), Adult Disability Payment (ADP), or the care component of Disability Living Allowance (DLA) will not be eligible to seek Attendance Allowance.

To file a claim, individuals must complete an Attendance Allowance form that clearly outlines the assistance they require and do not require.

People can obtain a form by calling the hotline at 0800 731 0122 or downloading it through the government website.

Pension Credit 2024

The Department for Work and Pensions (DWP) provides Pension Credit to pensioners on low income as a separate benefit from the state pension. It is offered to boost people's income and help them reach a more comfortable quality of life.

Those who receive this benefit can also access a wide variety of additional benefits, such as assistance with housing costs, council tax or energy bills.

Individuals can qualify for this benefit even if they have other income, savings, or own their home, but they must apply for it as it is not automatically paid.

The extra money increases people's weekly earnings to £218.15 if they are single, and to £332.95 if they have a spouse or partner.

Pension Credit can provide a monthly benefit of £945.32 to £1,442.78, based on the recipient's circumstances. When paired with the highest amount of Attendance Allowance, total monthly earnings could reach £1,913, yet neither of the benefits is subject to taxation.

Carers, severely disabled, or those in charge of a child or young person may be eligible for additional benefits, which can increase this sum even further.

You are most likely eligible for Pension Credit if your total weekly income is below £220. However, individuals with slightly higher earnings may still qualify.

State Pensioners Can Boost Income with Pension Credit

The Department for Work and Pensions (DWP) offers Pension Credit, a frequently underclaimed benefit that could increase eligible individuals' income by hundreds of pounds.

This benefit includes two components: Guarantee Credit and Savings Credit. It is available to those who are of state pension age (currently 66) or older and have a low income.

Guarantee Credit is the major component ensuring someone's weekly income is increased to a certain minimum level.
For 2024, this equals  £218.15 a week for single applicants and £332.95 a week for couples.

In the meantime, Savings Credit offers “an extra boost” of up to £17.01 a week for singles and £19.04 a week for couples. This additional payment totals as much as £990.08 per year.

Savings Credit is accessible to anyone who attained the state pension age before April 2016 and saved for retirement through personal or workplace pensions.

People who do not receive the Guarantee Credit portion of Pension Credit may still be eligible for Savings Credit, so it is critical to file a claim. However, the benefit must be claimed; it is not payable automatically.

Martin Lewis Highlights Pension Credit Claims Gap and Application Process

Martin Lewis's Money Saving Expert website reports: “More than three million households are eligible for Pension Credit, but it's estimated that over 800,000 don't claim – in many cases because they don't realise they could be entitled to it.”

It further states: “[Pension Credit] is NOT automatic so you MUST claim – here's how. You can apply via Gov.uk if you've already claimed your state pension, otherwise phone the Pension Service on 0800 99 1234 (or the Northern Ireland Pension Centre on 0808 100 6165). You can backdate it for three months, so the quicker you check, the quicker you'll benefit.”

On Good Morning Britain, the financial expert noted: “It is a national tragedy that up to one million pensioners are missing out on this rather substantial entitlement in many cases.

“Many of those pensioners have been paying into the system for years and what Pension Credit is meant to do, is top people’s income up so if their state pension or other income isn’t enough, they still have a reasonable standard of living.”

Those claiming Pension Credit may also qualify for other forms of assistance, including the Government's Winter Fuel Payment. This benefit assists seniors with heating expenditures during the winter, paying between £100 and £300 to individuals who meet the eligibility requirements.

The benefit was previously provided for every pensioner in England and Wales born before a specific date. However, Chancellor Rachel Reeves declared that starting this year, only those receiving means-tested benefits, like Pension Credit, will be eligible.

Pension Credit recipients may also be eligible for other forms of financial assistance, including council tax discounts and free TV licences.

People can visit the website here or phone the Pension Credit assistance line at 0800 99 1234 to check whether they are eligible for additional benefits.

Upcoming Payments to Support Households and Pensioners Amid Winter Budget Strain

According to the latest forecast, those on the standard tariff who pay by Direct Debit could see their annual bills rise from £1,568 to £1,762, an increase of £194.

The winter months usually strain household budgets more, and this year, there will be no cost of living payments. Additionally, around 10 million pensioner households will miss out on the annual Winter Fuel Payments, which typically range from £200 to £300.

This change comes after the UK Government decided to limit the payments to those over 66 who are on means-tested benefits like Pension Credit.

The Scottish Government has also implemented this change in eligibility and postponed the introduction of its replacement, the Pension Age Winter Heating Payment, until the winter of 2025/26.

Yet, there are six, different one-off payments to be given out to households, disabled individuals and people over State Pension age before the year's end. Most of these lump sums are meant to assist with climbing heating bills. Many benefit claimants are also set to get a ‘bonus’ and an additional payment for unpaid carers.

Winter Fuel Payment: £100-£300

Most of these payments are automatically provided in November or December, those eligible receive letters including information about the exact amount they will get before receiving their payment.

The change with the greatest impact on senior households this winter is the adjustment to the eligibility criteria for the one-off payment.

This payment ranges from £100 and £300, based on the recipient's age and home conditions. Notably, only those born before September 23, 1944 are eligible for the entire £300.

People must be over the age of 66 and receive a means-tested benefit, such as Pension Credit. Those over the State Pension age who get an income-related payment during the week of September 16-22, 2024, will get the payment automatically. This contribution is tax-free and does not affect any other benefits.

Eligible pensioner households will receive letters in October or November with details on how much Winter Fuel Payment they qualify for.

Child Winter Heating Payment: £251.50

The Child Winter Heating Payment of £251.50 supports Scottish households with disabled children or youngsters under the age of 19. This payment is meant to help families with extra winter costs.

Payments usually start in November, similar to last year. Qualifying families will receive a letter before the payment is sent.

To be eligible, families must be receiving certain disability benefits, such as the highest rate of Child Disability Payment, Disability Living Allowance for Children, or enhanced rates of Personal Independence Payment or Adult Disability Payment. Eligibility is based on being in receipt of these benefits during the week of September 16-22, 2024.

Winter Heating Payment: £58.75

According to Social Security Scotland, payments will be issued from mid-December, allowing the majority of qualifying families to receive the payment before the end of February 2025. If you qualify, you will get a letter from Social Security Scotland before they provide the payment.

This payment can only be claimed by people on an income-related benefit residing in Scotland and switched to the £25 Cold Weather Payment provided by the Department for Work and Pensions (DWP) two years ago. Unlike the DWP benefit, this one is not based on a prolonged period of cold weather in a specific region, but rather a yearly, one-off payment provided regardless of the temperature.

Warm Home Discount: £150 Paid to Energy Providers

The DWP hands this payment directly to energy suppliers. It is then added as credit to customers' accounts.

If you happen to be a credit customer the £150 will arrive on your electricity account and if you’re on Pay As You Go or Prepayment, a voucher that you can use to boost your meter will be sent to you.

The Warm Home Discount Scheme is meant to help those on a low income and on certain income-related benefits, including: Universal Credit or Pension Credit.

Carer Allowance Supplement: £288.60

These are usually paid automatically in December. Social Security Scotland will send out letters beforehand to confirm who may qualify for the payments.

The payments are administered by Social Security Scotland and made separately from Carer's Allowance. To qualify for the next payment in December, people need to be in receipt of either Carer’s Allowance from the DWP, or the newly launched Carer Support Payment from Social Security Scotland, on October 7, 2024.

Christmas Bonus: £10

This bonus is frequently provided automatically in early December. It is a one-off, tax-free £10 payment made to those who qualify for the State Pension or those who claim other benefits during the qualifying week.

No application is required in order to get the extra £10 as it automatically goes into the account where you usually get your State Pension or benefit payment.

Benefit Claimant Faces Penalty and Prosecution Threat Over Allowance Error

Clemency Jacques was interrogated under caution and accepted to settle the penalty for an error that could have been detected earlier.

“I sat there for two hours crying,” she claimed to the Guardian newspaper, adding that officials read her her rights “just like in the movies” throughout an interview at a Jobcentre. The woman was warned that she may risk police arrest, submission to the Crown Prosecution Service, and a court hearing.

The 43-year-old woman, who cares for her physically disabled son and her very old mother, learnt that she violated carer's allowance earnings guidelines and had been overpaid £2,600 over 10 months, thereby infringing DWP rules.

She stated: “I apologised and said it was a complete mistake. But the interview process is designed to be as cold and dehumanising as possible, focusing on trying to prove my guilt, trying to catch me out with every statement I made.”

“So I was lucky,” she added. “They had decided to be more lenient on me, and I was given the ‘opportunity’ to sign a bit of paper admitting my guilt and agreeing to pay an administrative penalty of 50% of the overpayment.”

She noted: “I didn’t want to do this, I shouldn’t have had to do this, but I was petrified of their threat to prosecute me and my life being ruined by getting a criminal record for fraud.” The DWP asserted it was examining Jacques’s case “as a matter of urgency”.

“I wish I had never applied for carer’s allowance in the first place,” she states. “The system unfairly punishes carers, it knows it does, and it doesn’t care.”

Katy Styles, the founder of the We Care Campaign, a network dedicated to supporting unpaid carers, stated: “Threatening to criminalise unpaid carers over genuine and understandable errors related to carer’s allowance earnings rules is a disproportionate response, and it’s shocking that we continue to hear these stories. Where is the compassion?”

Carer's Allowance Scandal: Unpaid Carers Face Heavy Penalties and Threats from DWP

According to a Guardian investigation, Jacques is one of thousands of unpaid carers who are penalised by the Department for Work and Pensions (DWP) carer's allowance system. The issue stems from “cliff edge” earnings rules, which require carers to repay the entire £81.90 weekly allowance if they exceed a weekly earnings limit of £151.

A caretaker who received £1 above the threshold for 52 weeks would be required to repay £4,258.80 rather than £52. Some are also being charged for fraud.

According to the most recent figures, 134,500 unpaid carers handed back £251 million in earnings-related overpayments last year, with 11,500 of them owing £5,000 or more.

Critics claim the DWP was careless in failing to take appropriate action on its own information, which detects overpayments right away.

Jacques's experience sheds light on an extremely disputable aspect of the carer's allowance controversy: the DWP policy of threatening to charge some unpaid carers who violate earnings rules, and then giving them the option of paying large fines — known as administrative penalties — in exchange for dropping legal charges.

Universal Credit Claimants Warned as Payments Cut for Many

According to the most recent figures from the Department for Work and Pensions (DWP), around 571,970 individuals were sanctioned between May 2023 and April 2024, reports the Birmingham Live.

Among these, 535,750 encountered payments cuts because they missed a obligatory interview with a Jobcentre work support adviser. The research has also found that 16,300 had their payments halted for choosing to remain unemployed.

And around 11,900 claimants had their payments switched because they refused to go on employment programmes.

According to the report, 6,700 people were penalised for failing to provide a valid cause for quitting their jobs.

Experts' Advice on Avoiding Universal Credit Sanctions

Samuel Thomas, senior policy adviser at charity Z2K, stated: "We're very concerned to see such a high number of people being sanctioned. Being sanctioned can push people into destitution and leave them unable to afford food or pay bills, which only makes it harder to find work."

He went on to say: "If you have been sanctioned you should seek advice immediately as you can appeal against a sanction and seek a back payment if wrongfully sanctioned. You can also apply for a hardship payment to get emergency money.”

There are four kinds of steps someone can follow to prevent being sanctioned. Advice Now suggests: "Make sure that you understand your Claimant Commitment and other 'work-related responsibilities'.

If you don't have one or are having trouble finding one, contact your Jobcentre as soon as you can and request a copy.

"Make sure your Claimant Commitment reflects your circumstances. Avoid doing or not doing things that break your Claimant Commitment. Be really organised and keep records of your dealings with the Jobcentre and everything you do to meet the terms of your Claimant Commitment."

State Pension Increase to Cause Widespread Confusion

With the triple lock, the UK state pension increases every year by the highest of inflation, earnings growth or 2.5%.

In April of last year, pensioners were able to enjoy a 10.1% increase due to inflation, but this April their raise was 8.5%,based on earnings growth.

Each year's triple lock raise is determined by consumer price inflation rate from September of the previous year, and earnings growth from May to July.

Inflation was 2.2% in July, while earnings rose by 4.5% from April to June. As a result, the earning's element from the triple lock will likely determine next year's state pension increase.

If earnings continue to increase by 4.5% in the three months leading up to July, the state pension is likely to rise by that same amount when the decision is confirmed in mid-September.

This will make the new state pension rise from £11,502 to approximately £12,020 for those eligible for the full amount.

Nevertheless, millions of pensioners may get significantly less, leaving to widespread confusion.

Rising Disparity Between New and Old State Pensions Causes Concern

The issue originates from the existence of two state pensions: the single-tier new state pension for those who retired after April 6, 2016, and the basic state pension for those who retired before then.

Both pensions are subject to the triple lock, but the basic state pension begins at a lower level, making each year's increase less valuable to those receiving it. The gap is widening year after year.

In April this year, the new state pension climbed by £901 while the standard state pension grew by just £690.

The disparity between the two expanded by £211 in just one year to an astounding £2,688.

Next April, the new state pension is set to rise by £517. The old basic state pension, however, will only rise by £396.

The gap will have increased by an additional £122 to £2,810.

Many people feel it is unjust that retiring just a day before April 6, 2016, could lead to getting £2,810 a year less compared to someone who retired afterwards. That equals  £54 weekly.

The amount someone can get depends on the number of years of qualifying National Insurance (NI) contributions or credits they have. However, a more significant factor is involved.

The state earnings-related pension plan (Serps) or state second pension (S2P) boost the standard state pension for many older pensioners.

This is not included in the basic state pension figures.

Since the additional state pension relies on earnings, men often accumulate far more than women. Women receive more than men on the new state pension.

Last year, male basic state pensioners received an average of £9,291 per year, slightly higher than the new state pension of £9,128.

Women receiving the basic state pension earned just an average of £7,951. Women earn more on the new state pension, with an average of £8,872.

Women benefit more from the new state pension than men do. However, there are many variables involved.

Pensioners with modest incomes may be eligible for Pension Credit, which provides a minimum annual income of £11,343.80 for singles and £17,313 for couples. However, nearly a million of the most impoverished individuals do not file claims.

Triple Lock Pension Cuts Leave Millions with 11.50 Pounds Less Each Month

Labour leader Keir Starmer has promised to keep the extremely popular boost mechanism in place for the duration of the current Parliament's five-year term, as reported by the Express.

The triple lock has been heavily critisized in recent years for giving state pensioners two large rises in a row.

In April 2023, they were given 10.1% based on inflation, while this April they received 8.5%, in line with earnings growth. This assisted millions cope with the cost-of-living crisis and softened the impact from previous PM Rishi Sunak's contested move of halting the triple lock in 2021.

Each year's triple lock hike is based on consumer price inflation from September the previous year and earnings growth over three months from May to July.

Inflation is currently around 2%, but earnings rose at a faster rate of 5.7% in the three months to May this year.

The higher earnings figure is expected to apply when the 2025 increase is set. However, earnings for the three months to June have dropped sharply to 4.5%, which is a significant hit, especially if it continues in July.

This would mean that millions of people receiving the new state pension would receive £138 less than they had expected. That equates to £11.50 per month in income loss.

Pensioners Hit by Lower Triple Lock Increase and Winter Fuel Payment Cuts

Helen Morrissey, Hargreaves Lansdown's head of retirement analysis, stated in June last year that NHS employees received large one-time bonuses.

Because they are not receiving them this June, the month's wage growth figure decreased.

Morrissey said retirees will still enjoy the increase, but warned that "with many still reeling from the news that their winter fuel payment is to be taken away, it won't be quite the boost they hoped for."

According to Aegon pensions head Steven Cameron, this is a second hit for seniors after Labour chancellor Rachel Reeves' decision to cut the winter fuel payment.

"This will be a disappointment to state pensioners who might otherwise have received a higher increase."

Cameron warned that in real terms, pensioners will be no better off by £517. "Any increase in 'real' terms will be significantly dented by the loss of their winter fuel allowance."

DWP Update: Key Figures in Legacy Benefits Transition to Universal Credit

The Department for Work and Pensions (DWP) has released an update on the transition from older benefits, like tax credits, to Universal Credit.

Those receiving Income Support, Tax Credits with Housing Benefit, ESA (Income Based) with Child Tax Credit, or JSA have been sent letters informing them that they need to reapply for Universal Credit. If they fail to do so, their benefits will be discontinued.

From July 2022 to June 2024, the Department for Work and Pensions (DWP) mailed migration notices to 1,140,810 people in 771,810 households. Out of these, 623,310 people applied for Universal Credit (UC), and 232,800 households were granted transitional protection. Another 232,830 are still working through the transition to UC.

Unfortunately, 284,660 people who received migration notices didn’t apply for UC and had their legacy benefits stopped. This means that, as of the end of February 2024, 32% of those who got a migration notice didn’t make a UC claim and lost their benefits, while 68% did apply for UC.

Concerns Raised Over Universal Credit Transition

There’s been worry that some people, especially those who are vulnerable, might not understand that they need to act, leading them to miss out on important financial support. MPs in the House of Commons have raised concerns about this process, fearing that people could be losing money they’re entitled to because they have to make a new application.

The Institute for Fiscal Studies (IFS) looked into how the switch to UC is affecting about eight million people and found that some are potentially missing out on around £4,000 because of the transition.

Households with one adult over state pension age and one adult under it are struggling more under Universal Credit (UC) compared to the old  benefit system. The Institute for Fiscal Studies (IFS) found that these households are losing more than £4,000 a year because they’re now on UC instead of the more generous pension credit. About 70% of these households—around 180,000 in total—are facing this shortfall. Those with assets over £16,000 and self-employed people are also seeing significant losses under UC.

The report does show some positive aspects too. Couples with children are generally better off under UC. About 72% of them gain at least £200 a year, while only 22% lose that much. Working families and renters also tend to benefit more from UC, since the system reduces benefits more slowly as their earnings go up.

Earlier this year, it was mentioned in the House of Commons that people might be missing out on around £3,200 a year by not switching their benefits. It’s estimated that about a quarter of those affected haven’t made the switch yet.

DWP Announces Early Payments for August Due to Bank Holiday

If your payment was originally due on Monday, August 26, expect to get it in your bank account by Friday, August 23.

Payments are being made early this month to help people pay their bills on time and avoid problems caused by delays. Andy Wood, a money expert from Crypto Tax Degens, pointed out that bank holidays can mess up the usual payment schedule, which can be stressful for those who depend on these benefits.

It’s important that the DWP and HMRC clearly communicate any changes due to the holiday. For example, if you’re due to receive Child Benefit or Tax Credits on August 26, you’ll get them earlier, on August 23. Knowing this in advance helps people plan their finances and avoid issues.

Potential Impact of the Date Changes on Some Benefit Claimants

Wood also mentioned that these early payments are of great importance, especially to those on a tight income, and  those claiming benefits such as Universal Credit, PIP, and the State Pension. He said, “An early payment ensures that these individuals, many of whom live on tight budgets, can maintain their financial stability without interruption.”

The money expert highlighted how clear communication about the upcoming changes is essential, saying: “Bank holidays often disrupt the regular schedule of benefit payments, which can be concerning for those who rely on this income. Effective communication from DWP and HMRC is critical.”

For instance, Child Benefit and Tax Credits due on August 26 will be paid earlier, on August 23.

Since bank holidays are a regular occurrence, it’s good to understand their impact on benefit payments. Wood added, “With payments like Carer's Allowance, Disability Living Allowance, and Jobseeker's Allowance being issued ahead of time, beneficiaries are encouraged to plan their budgets with these early payments in mind, ensuring they can cover their essential needs during the holiday period.”

By June, inflation had at last hit the Bank of England’s target of 2%, marking a considerable drop from its peak of 11.1% in October 2022. However, this piece of news should not be seen as encouraging as it only implies that prices are increasing at a slower rate rather than going back to what they used to be previously.

Costs associated with living were promised to be dealt with by the newly-elected Labour government in its manifesto by dealing with foundational issues. The Secretary of State for Work and Pensions Liz Kendall has stated on her official website about serious intentions to eliminate “economic inactivity” through introducing ‘Back to Work’ initiative aimed at increasing employment opportunities.

August 2024 Benefits and Pensions Payments

This August, various benefits and pension payments will continue as usual, including:

• Universal Credit
• State Pension
• Pension Credit
• Child Benefit
• Disability Living Allowance
• Personal Independence Payment
• Attendance Allowance
• Carer’s Allowance
• Employment Support Allowance
• Income Support
• Jobseeker’s Allowance

Note that payments scheduled for the bank holiday on Monday, 26 August, will be disbursed the preceding working day, Friday, 23 August. For further details regarding state benefits, please consult the government’s official website.

Unclaimed Benefits and Additional Support

A new report from Policy in Practice stated up to £23bn every year is not claimed by individuals in benefits. They offer a handy calculator that helps people work out what they should receive. If you have any problems with the DWP, you can email albert.toth@independent.co.uk.

Household Support Fund

In March’s budget, Jeremy Hunt, ex Chancellor, extended the Household Support Fund (HSF) another six months. It’s a fund given to local authorities to help households at risk.

These funds can be used by councils for different purposes including cash grants, supermarket vouchers or assistance towards energy bills. Contact your local authority office for more information on this offer.

Other Available Assistance

• Budgeting Advance Loans: The government now offers interest-free budgeting advance loans lasting up to two years at no charge as a last resort for Universal Credit claimants facing financial emergencies. Eligibility limits are:
  • £348 for singles
  • £464 for couples
  • £812 for families with children
• Charitable Grants: Various charitable grants exist for those who are struggling financially, and these come with specific eligibility requirements. There is an online tool of charity Turn2us that allows you to find possible grants for which you may be qualified.
• Energy Provider Assistance: Many energy suppliers, including Scottish Power and British Gas, offer support for customers struggling with energy bills. British Gas, for example, provides grants of up to £2,000 under certain conditions.
• Council Tax Reduction: Individuals receiving specific benefits may qualify for a council tax reduction of up to 100%. Local councils can also offer discretionary reductions for those demonstrating severe financial hardship.

Childcare Support

In the UK presently, all employed parents are eligible for 30 hours of free childcare for three- and four-year-old children. By April 2024, this will be expanded to provide 15 hours of care for two-years old. Parents will have to apply online and confirm their eligibility every quarter year. They plan to make even more expansion, which includes:

• September 2024: 15 hours of free childcare for children from nine months.
• September 2025: 30 hours of free childcare for all children under five.

This is important for the 12.7 million State Pensioners across Great Britain because it will affect the pension increase coming in April under the Triple Lock policy. The earnings growth data used for this adjustment is from May to July, and the official numbers won’t be available until September, as reported by the Daily Record.

State Pensioners Could See Weekly Boost Under Triple Lock

Under the Triple Lock policy, the New and Basic State Pensions are increased each year based on whichever is highest among the average earnings growth from May to July, the Consumer Price Index (CPI) for the year up to September, or a guaranteed 2.5 percent increase.

According to the most recent wage growth figures, the full New State Pension might climb by about £10 each week, from £221.20 to £231.15, and since the payment is normally delivered every four weeks, this amounts to £924.60.

Furthermore, the full Basic State Pension may increase by £7.60 every week, from £169.50 to £177.15, or £708.60 each four-week payment period.

Given that inflation is now at 2.0%, pension experts affirm that pay data would most likely be used to justify the increase.

Helen Morrissey, head of retirement analysis, Hargreaves Lansdown, stated: “Wage growth remains robust, so it’s highly likely that next month’s figure will be the one used to uprate State Pension under the Triple Lock. This month’s figure comes in at 4.5 per cent — way down on last month’s 5.7 per cent, but it has been affected by the payment of one-off bonuses in the NHS last year.

“If the figure were to remain the same next month, then we could see the full New State Pension get a boost of around £517 — taking it to approx. £12, 019 per year.”

The retirement expert went on to say: “Such a rise will be welcomed by pensioners still emerging from the cost of living crisis. However, with many still reeling from the news that their Winter Fuel Payment is to be taken away, it won’t be quite the boost that many hoped for.”

She also explained how keeping Personal Allowance at £12,570 is set to bring a larger number of pensioners closer to the tax threshold.

Ms Morissey clarified: “There’s another looming challenge — frozen tax thresholds mean that the full New State Pension is creeping ever closer to tax paying territory and a similar rise next year could see it surpass it. With these freezes in place until 2028, there’s every chance we could see pensioners solely reliant on the State Pension finding part of it is making its way to the taxman.”

NHS Bonus and Winter Fuel Cuts Impact State Pension Increases

According to the latest data from the Hargreaves Lansdown Savings and Resilience Barometer, only 38% of households are currently on pace for a decent retirement income, indicating that there's a long road ahead.

Dealing with the consequences of long-term health issues on the workforce will be a significant task for the recently elected Labour government.

Steven Cameron, Pensions Director at Aegon, stated that the NHS bonus paid the previous year is expected to “suppress the figure due to be announced next month” but added that it is “highly likely that the increase will be based on earnings growth”.

He further stated: “The specific figure used for determining the Triple Lock is the year-on-year increase in earnings for the period ending May to July 2024, which will be published next month in mid-September. Barring any big fluctuations when July’s earnings figures are added in, this suggests State Pensioners may receive around a 4.5 per cent increase.

“The June 2023 NHS one-off bonus will also affect the May to July 2024 calculation, which will be a disappointment to state pensioners who might otherwise have received a higher increase.”

He also noted that millions of pensioners are likely to miss out on £200 in Winter Fuel Payments this year, stating: “While next April’s State Pension increase is likely to be higher than current inflation, any increase in ‘real’ terms will be significantly dented by the loss of the Winter Fuel Payment.”

State Pension Errors Could Result in Back Payments of Up to £2,000

In order to fix previous State Pension errors that relate to certain categories of people, including widows and widowers, the Department for Work and Pensions (DWP) launched a Legal Entitlements and Administrative Practice (LEAP) corrections exercise back in February 2021, as reports the Daily Record.

Yet, Sir Steve Webb, stated that new evidence shows that a recent group of cases still contains incorrect data. He said those who claim the New State Pension, who were already widowed during their retirement, may not have received the full amount and could be due a back payment.

He further implied that four separate individuals had contacted him, stating they were denied the inherited State Pension upon retirement they retired and were informed by the DWP either through letters or over the phone that they did not qualify for it.

He clarified that the information provided in all four cases was incorrect and arrangements have been made for an increased State Pension, along with the establishment of arrears. In two of the cases, the underpayment was more than £2,000 annually, which could result in a shortfall of £40,000 throughout a standard retirement.

Sir Steve said one of the persons who contacted him had said: “I personally would like to see more people come forward to claim what is rightfully theirs.”

Who Could be Impacted by the Recent Underpayments?

According to Sir Steve, those affected generally include widows or widowers who claim their New State Pension if either the deceased spouse reached state pension age before April 6, 2016 or if the spouse passed away before that date.

The specific amount of inherited State Pension varies based on personal factors, but could be higher if the deceased spouse was employed instead of being self-employed. Additionally, if the widowed spouse is not getting a widow’s pension from a company's pension scheme, this may impact the amount of inherited state pension due.

Sir Steve stated: “Having had to spend years checking hundreds of thousands of historic State Pension calculations for errors, you would hope that DWP would be making sure that new claims are handled correctly. But we have found worrying evidence that this is not the case.

“There seems to be a particular problem for people who are widows or widowers when they claim their State Pension. In some cases DWP seems to have failed to automatically add any inherited State Pension they were due from a late partner.

“These cases may well be the tip of an iceberg.”

LCP has launched an online tool to help individuals understand the type of State Pension they are inheriting in addition to their own state pension.

Sir Steve added: “The Department needs to launch an urgent investigation into the scale of this problem.”

A spokesperson for the DWP asserted: “We want to ensure pensioners receive all the support to which they are entitled and have a tool to help them understand what State Pension they can inherit.

“Delays can occur to a customer’s State Pension award when not all the information we need is provided. In these cases, we will make a State Pension award based on the customer’s own National Insurance record until we have the required information.

“Once we have the necessary documentation, we will then revise the customer’s claim as soon as possible.”